State RegulationsMI specificDifficulty 1/5
Under M.C.L. 500.4010, when and where are premiums on a Michigan individual life policy payable?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.C.L. 500.4010 provides that premiums on Michigan individual life policies are payable in advance, either at the insurer's home office or to a producing agent upon delivery of a signed receipt. The signed receipt protects the policyowner with proof of payment, while advance payment ensures coverage is funded before it is furnished.
Why the other options are wrong
- A) Michigan requires premiums payable in advance, not in arrears at the end of the policy year.
- C) Payment to a producing agent upon delivery of a signed receipt is expressly permitted; mailing to the home office is not the only option.
- D) The grace period is a protection after a premium is overdue; it is not a payment schedule chosen at the owner's discretion under M.C.L. 500.4010.
Memory hook
Premiums in advance; pay an agent only with a signed receipt.