State RegulationsMI specificDifficulty 1/5
Under Michigan law, what minimum right to examine applies to an individual annuity contract delivered to a consumer in Sterling Heights?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
M.C.L. 500.4073 requires an individual annuity contract to carry a notice on its first page of a right to examine of at least 10 days from receipt; if the contract is returned within that period, it is void from the beginning and the premiums are refunded (for a variable annuity, the unallocated premiums plus the separate-account value). Annuity buyers therefore receive the same core free-look protection as life buyers.
Why the other options are wrong
- A) The annuity free look is at least 10 days, not 5, and the notice must appear on the first page (M.C.L. 500.4073).
- B) No 20-day period applies; and the refund is not limited to unallocated premiums — the separate-account value is included for variable annuities.
- C) The statutory minimum is 10 days rather than 15; and a variable-annuity refund does include the separate-account value.
Memory hook
Annuities: 10 days, first-page notice, void from the start.