State RegulationsMI specificDifficulty 2/5
A policyowner in Ann Arbor wants to receive an accelerated benefit under a rider added to a Michigan life policy. What conditions the insurer's obligation to pay?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under M.C.L. 500.3928 and 500.3949, payment of an accelerated benefit is triggered when the insured satisfies the qualifying condition defined in the rider — for a terminal-illness rider, the terminal condition specified in the contract. The trigger is medical and contractual, not a producer's judgment, a brief waiting period, or the owner's preference.
Why the other options are wrong
- A) A producer has no authority to trigger benefits; payment depends on the insured meeting the rider's qualifying condition.
- B) A 30-day waiting period is not the statutory trigger; the qualifying condition defined in the rider controls.
- C) A written request alone does not create the insurer's obligation; the contractual qualifying condition must be met under M.C.L. 500.3928.
Memory hook
The rider's qualifying condition — not the owner's wish — pulls the trigger.