What is a common feature of term insurance regulations in Michigan?

A common feature of term insurance regulations in Michigan is that the policies must include premium refund options. This means that if an insured borrower pays their premiums for a specified term and does not need to file a claim or the coverage ends without a claim being made, they are entitled to a refund of a portion of the premiums they have paid. This feature makes term insurance more appealing to consumers, as it provides a safety net in case the insurance is not utilized, thus offering a financial benefit even if the policy does not result in a claim.

In a regulatory context, such mandates ensure the protection of consumers and support responsible lending practices. It encourages borrowers to take out insurance, knowing they will not completely lose their investment if they do not end up using the policy, which can enhance the financial viability of credit transactions.