Michigan Insurance Code of 1956, Chapter 40

What this document is

Michigan Insurance Code of 1956, Chapter 40 - Life Insurance Policies and Annuity Contracts (Other Than Industrial or Group) (MCL 500.4000 to 500.4073) is a state statute published by www.legislature.mi.gov. It is one of the Michigan documents that insurance license exam questions are written from, including michigan life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• MCL ch. 500 § 4012(a) (Life Insurance Policy; Grace Period Provision Required)

  “(a) A grace period of 1 month for the payment of every premium after the first year, which may be subject to an interest charge, during which month the insurance shall continue in force and which provision may contain a stipulation that if the insured dies during the month of the grace period, the...”

• MCL ch. 500 § 4014 (Entire Contract; Incontestability; Exceptions)

  “There shall be a provision that the policy, together with the application therefor, a copy of which application shall be endorsed upon or attached to the policy and made a part thereof, shall constitute the entire contract between the parties and shall be incontestable after it shall have been in...”

• MCL ch. 500 § 4018 (Misstatement of Age or Sex; Provisions Required)

  “Each life insurance policy shall contain a provision that if there is a misstatement as to the age or sex of the insured in the policy, the amount payable or the death benefit under the policy shall be that which would be purchased by the most recent mortality charge or premium at the correct age or sex.”

• MCL ch. 500 § 4060(2)(h) (Standard Nonforfeiture Law for Life Insurance; Deferral of Cash Surrender Value)

  “(h) The company shall reserve the right to defer the payment of any cash surrender value for a period of 6 months after demand for the payment with surrender of the policy.”

• MCL ch. 500 § 4028 (Default in Premium Payments; Reinstatement; Provision Required)

  “There shall be a provision that if, in event of default in premium payments, the value of the policy shall be applied to the purchase of other insurance, and if such insurance shall be in force and the original policy shall not have been surrendered to the company and canceled, the policy may be...”

• MCL ch. 500 § 4030 (Settlement of claim upon death of insured; provision required)

  “There shall be a provision that when a policy shall become a claim by the death of the insured, settlement shall be made upon receipt of due proof of death, or not later than 2 months after receipt of such proof.”

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