State RegulationsMI specificDifficulty 1/5
In a Michigan life insurance contract, which of the following is a right of the policyowner?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under the Michigan Insurance Code (Insurance Code of 1956), the policyowner holds the bundle of contractual control rights: changing the beneficiary, selecting and changing settlement options, assigning the policy, borrowing against the cash value, and surrendering the policy. These rights exist regardless of whether the owner is also the insured. Ownership, not insured status or beneficiary status, is what carries the authority to direct the policy during the insured's lifetime.
Why the other options are wrong
- A) Receiving the death benefit is a beneficiary's right that arises only at the insured's death and only if designated — it is not an ownership right.
- B) Whether statements are representations rather than warranties is fixed by Michigan statute, not by any party's choice within the contract.
- C) Interest-crediting rates are set by the insurer under the contract's terms; the policyowner directs the policy's disposition, not the insurer's pricing.
Memory hook
The owner holds the levers; the beneficiary just waits for the check.