State RegulationsMI specificDifficulty 1/5
An individual life policy owned in Battle Creek lapsed for premium default. Within what period after the default may the policyowner reinstate the policy under Michigan law?
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 B is correct
M.C.L. 500.4028 gives the policyowner 3 years from the premium default to reinstate a lapsed individual life policy. Reinstatement requires evidence of insurability satisfactory to the insurer plus payment of the overdue premiums with interest. This window preserves long-standing coverage that might be impossible or costly to replace with a new policy.
Why the other options are wrong
- A) 2 years is the Michigan cap on the time limit on defenses for disability policies, not the life reinstatement window (M.C.L. 500.4028).
- C) 1 year is too short; the reinstatement window runs 3 years from the premium default.
- D) 6 months understates the statutory window; reinstatement remains available for 3 years.
Memory hook
Three years to bring a lapsed life policy back.