State RegulationsMI specificDifficulty 2/5
A Michigan insurer's licensed producer in Saginaw creates his own sales flyer for the insurer's disability income policy that omits key limitations of the benefits. Under Michigan Administrative Code R 500.651–.669, which party is responsible for the content of this advertisement?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
The Michigan Administrative Code advertising rules R 500.651–.669 place responsibility for advertisement content on the insurer whose policy is advertised, and a producer's sales aid for the insurer's product falls within that definition. The insurer must ensure that materials used in the field, including producer-created pieces, are not misleading; the producer also faces exposure under the Michigan Insurance Code misrepresentation provisions, M.C.L. 500.2005. Practically, insurers control and review producer sales materials to meet this duty.
Why the other options are wrong
- A) Independent drafting does not shift the duty away from the insurer whose policy and name the flyer promotes.
- B) A printer executes copy but holds no compliance responsibility for insurance advertising content.
- C) Producer sales aids promoting a policy are advertisements under the broad definition, so responsibility is not avoided by the piece being producer-made.
Memory hook
Your logo, your ad, your liability.