State RegulationsMI specificDifficulty 3/5
A Michigan insurer reinstates an accident and health policy and applies the collected premium to premium defaults stretching back 90 days before the most recent default. Under M.C.L. 500.3411, what is the result?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.C.L. 500.3411 caps the reachback of premiums applied on reinstatement: the payment cannot cover a default occurring more than 60 days before the default being cured. Applying premium to a default 90 days back exceeds the statutory limit and cannot revive coverage for that earlier period.
Why the other options are wrong
- A: The statute expressly limits how far applied premiums may reach back on reinstatement.
- B: The premium mode has no bearing on the 60-day reachback cap.
- D: The statute permits covering defaults within the 60-day window, not merely one premium.
Memory hook
Reinstatement money reaches back 60 days, not a day more.