State RegulationsMI specificDifficulty 1/5
A Michigan policyowner's individual life policy lapsed for premium default. Within what period after the default may the owner apply to reinstate the policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
M.C.L. 500.4028 allows a Michigan individual life policy to be reinstated within 3 years from the date of premium default, upon evidence of insurability and payment of the arrears with interest. Once that 3-year window closes, the owner's only route back to coverage is a new application subject to current underwriting and age-based pricing.
Why the other options are wrong
- A) 6 months understates the reinstatement window; M.C.L. 500.4028 allows 3 years from the default.
- B) 1 year is shorter than the statutory reinstatement period for lapsed individual life policies.
- C) 2 years confuses the reinstatement window with Michigan's 2-year incontestability period; reinstatement runs 3 years from the premium default.
Memory hook
Three years to revive a lapsed life policy.