State RegulationsMI specificDifficulty 3/5
A Michigan claimant files a claim with an insurer. Under the claims-payment provisions of the Michigan Insurance Code, how long does the insurer have to specify what constitutes proof of loss, and when does interest on unpaid benefits begin?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.C.L. 500.2006 splits the two timelines: the insurer has 30 days after receiving a claim to specify what constitutes proof of loss, while 12% annual interest on unpaid benefits begins 60 days after satisfactory proof of loss is filed. Conflating the 30-day specification deadline with the 60-day interest trigger is a common examination error.
Why the other options are wrong
- A) The specification period is 30 days, not 60, and the interest trigger is 60 days after satisfactory proof, not 30 days after filing.
- B) The 45-day period in M.C.L. 500.2006 governs payment of clean claims, not the specification of proof, and interest starts from the proof of loss, not the submission date.
- D) Interest does not run from the date of loss; M.C.L. 500.2006 starts the 12% clock 60 days after satisfactory proof of loss is filed.
Memory hook
30 days to define the proof, 60 days to pay or pay 12%.