According to Michigan regulation, when can insurance coverage end relative to the maturity date of a debt?

In Michigan, regulations concerning credit insurance stipulate that coverage may not extend more than 15 days beyond the scheduled maturity date of the debt. This guideline is in place to ensure that the insurance does not outlast the actual financial obligation the debtor has, allowing for a clear end to coverage that aligns with the payment schedule agreed upon when the debt was incurred.

By limiting the coverage period to a maximum of 15 days past the maturity date, the regulation provides a balance between protecting the interests of both the debtor and the insurer. It prevents situations where coverage remains indefinitely, which could lead to unnecessary costs for the debtor or ambiguity in the terms of the insurance.

Understanding this regulation is crucial for credit insurance producers, as it ensures compliance with state laws, promotes responsible lending practices, and protects consumers from excessive insurance on debts that they have already fulfilled.