State RegulationsMI specificDifficulty 1/5
After what minimum period from the policy date may a Michigan individual life insurer no longer contest the policy on the basis of misstatements in the application, other than for nonpayment of premium?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.C.L. 500.4014 makes a Michigan individual life policy incontestable after 2 years from its date, except for nonpayment of premium. Once the 2-year contestability period runs, the insurer cannot rescind the policy or deny the death benefit over application misstatements, giving beneficiaries final security in the contract.
Why the other options are wrong
- A) 6 months is far shorter than the statutory contestability period in M.C.L. 500.4014.
- B) 1 year understates the period; Michigan individual life policies become incontestable after 2 years.
- D) 3 years belongs to other Michigan rules, such as the reinstatement window, not the life incontestability period.
Memory hook
Two years and the application can't sink the claim.