Sec. 3409.
(1) Except as provided in subsection (2), a disability insurance, other than group and blanket insurance, delivered or issued for delivery to a person in this state shall contain the following notice, in substance printed or stamped on the front page and made a permanent part of the policy:
Cancellation during first 10 days: During a period of 10 days after the date the policyholder receives the policy, the policyholder may cancel the policy and receive from the insurer a prompt refund of any premium paid for the policy, including a policy fee or other charge, by mailing or otherwise surrendering the policy to the insurer together with a written request for cancellation. If a policyholder or purchaser pursuant to such notice returns the policy or contract to the company or association at its home or branch office or to the agent through whom it was purchased, it shall be void from the beginning and the parties shall be in the same position as if no policy or contract had been issued.
Cancellation after 10 days: A policyholder may cancel the policy after the first 10 days following receipt of the policy by giving written notice to the insurer effective upon receipt or on a later date as may be specified in the notice. In the event of cancellation, the insurer shall promptly refund to the policyholder the excess of paid premium above the pro rata premium for the expired time. Cancellation is without prejudice to any claim originating prior to the effective date of cancellation.
(2) A policy of disability insurance which is sold through solicitation to a person who is eligible for medicare shall contain the following notice, in substance printed or stamped on the front page and made a permanent part of the policy:
Cancellation during the first 30 days: During a period of 30 days after the date the policyholder receives the policy, the policyholder may cancel the policy and receive from the insurer a prompt refund of any premium paid for the policy, including a policy fee or other charge, by mailing or otherwise surrendering the policy to the insurer together with a written request for cancellation. If a policyholder or purchaser pursuant to such notice returns the policy or contract to the company or association at its home or branch office or to the agent through whom it was purchased, it shall be void from the beginning and the parties shall be in the same position as if no policy or contract had been issued.
Cancellation after 30 days: A policyholder may cancel the policy after the first 30 days following receipt of the policy by giving written notice to the insurer effective upon receipt or on a later date as may be specified in the notice. In the event of cancellation, the insurer shall promptly refund to the policyholder the excess of paid premium above the pro rata premium for the expired time. Cancellation is without prejudice to any claim originating prior to the effective date of cancellation.
History: Add. 1978, Act 144, Eff. Aug. 10, 1978 ;-- Am. 1980, Act 329, Imd. Eff. Dec. 19, 1980 ;-- Am. 1990, Act 170, Imd. Eff. July 2, 1990
Popular Name: Act 218
Last modified: October 10, 2016