State RegulationsMI specificDifficulty 2/5
In Michigan individual disability (accident and health) policies, misstatement of age is typically addressed through which type of provision?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
M.C.L. 500.3434 lists misstatement of age among the optional provisions Michigan permits in individual disability policies. If the insurer includes the provision, the benefit is adjusted to the amount the premium paid would have purchased at the correct age — the same equitable-adjustment philosophy that governs life policies. Because it is optional, insurers choose whether to include it, but when included it operates as the benefit-adjustment mechanism.
Why the other options are wrong
- B) The grace period (7, 10, or 31 days depending on premium mode under M.C.L. 500.3410) governs late premium payment, not age errors.
- C) Settlement options concern the modes in which life proceeds may be paid out, not corrections to age information in disability coverage.
- D) The provision is expressly permitted by M.C.L. 500.3434 as an optional provision, so it is lawful and enforceable.
Memory hook
Age off in A&H? It's optional — adjust the benefit, don't void the policy.