State RegulationsMI specificDifficulty 2/5
A Lansing resident applies to reinstate a life policy that lapsed for nonpayment. Under Michigan law, what must the policyowner provide to obtain reinstatement?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.C.L. 500.4028 conditions reinstatement of a lapsed individual life policy on evidence of insurability satisfactory to the insurer and payment of the overdue premiums with interest. Because the insurer takes back the full mortality risk, it may require proof that the insured's health has not materially changed rather than automatically restoring coverage on request.
Why the other options are wrong
- A) A written request alone does not restore coverage; evidence of insurability and payment of arrears with interest are required.
- B) Reinstatement is not a reissue — it uses the original policy, with the statutory conditions of insurability and arrears plus interest.
- D) Michigan law ties reinstatement to evidence of insurability whenever required, not to an age-65 medical-exam trigger.
Memory hook
Reinstatement = prove health again + arrears + interest.