State RegulationsMI specificDifficulty 1/5
A university in Kalamazoo purchases a blanket accident policy covering its students. Under Michigan blanket insurance rules, who receives the policy, and what do the individual students receive?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under M.C.L. 500.701 and the Chapter 34 blanket subsections of the Michigan Insurance Code (M.C.L. 500.3402d through 500.3402g), the blanket policy is delivered to the head of the group, here the university acting as master policyholder. Individual members of the group receive certificates of insurance describing the protection they have. Practically, a student proves coverage through the certificate, while the university holds and administers the actual policy.
Why the other options are wrong
- B) Individual policies are not issued in blanket coverage; the entire point is one policy for the group, with certificates for members.
- C) DIFS regulates but does not hold insurers' policies; the policy belongs with the group head, not the regulator.
- D) The producer is not the custodian of the master policy; it is delivered to the group head, and member proof does not depend on a producer's discretion.
Memory hook
The master gets the policy; the members get certificates.