Michigan Life Insurance (MI)

The state of Michigan has instigated laws and regulations to financially protect both consumers and insurers.

MIchigan Laws Protecting Consumers (MI)

Chapter 40 of the state’s Insurance Code is the regulating force behind life insurance laws in Michigan. These laws govern the policy requirements and claim procedures, protecting consumers who purchase insurance coverage within the state. Some of the regulations in place protecting consumers include:

• 30-Day Grace period: Allows thirty days past a premium’s due date to make the payment, without concern of the policy’s cancellation by the insurer. As long as the payment is made within the one month window, the coverage cannot be terminated by your insurance company.

• Written notification of policy termination must be given to the policy’s owner at least thirty days before the cancellation date, according to Michigan law.

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Additional Mi Life Insurance Laws

Prompt payment of a settlement is also guaranteed in the state. While the claim procedures differ between companies, the law states that if a claim is not settled within 60 days (after receiving proof of death), the proceeds will then begin to accrue interest.

The Michigan Life & Health Insurance Guaranty Association is in place to help compensate your life insurance policy in case your life insurance company was to become bankrupt and unable to pay. Licensed insurers in the state pay fees to belong to the association, who will then pay you if necessary. The Guaranty Association will protect your policy up to $300,000 for an individual’s total death benefit and $100,000 as total cash surrender. These maximums are in force no matter the total number of polices or coverage amounts held.

In order to qualify for these benefits, your life insurance company must be licensed in the state of Michigan and your policy’s premiums must be current.

Life-Insurance-Info.us is not a life insurance broker or carrier, and cannot issue life insurance policies. This site provides free information on insurance providers and coverage options. We are not associated with the companies profiled on Life-Insurance-Info.us and we make no representation, express or implied, that you will receive a quote from a specific company profiled herein. Products and policies may not be available in all states, and product and policy information is subject to change without notice. Please contact the insurance company directly to answer your policy inquiries.