Final answer:
In Michigan, insurers can be legally pursued for failing to pay life insurance claims for up to 6 years from the time the claim was made. So, the correct answer is option c.
Step-by-step explanation:
In Michigan, legal action can be taken against an insurer for failure to pay life insurance claims for a period not to exceed 6 years.
This reflects an understanding that insurers must balance payments into insurance over time to cover the average person’s claims, and the costs of running a company, and secure a profit margin. In the insurance industry, managing risk and ensuring financial solvency is crucial, as is evident from the different rates offered to individuals based on risk factors like family medical history.
Moreover, state regulations can strongly influence insurance practices, such as premium settings and decisions by insurers on whether to conduct business in certain states. So, the correct answer is option c.