State RegulationsMI specificDifficulty 1/5
In Michigan's small-employer coverage framework, the term 'eligible employee' generally refers to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Michigan's small-employer law, M.C.L. 500.3701 and M.C.L. 500.3707, keys eligibility to employees who satisfy the conditions Michigan law and the plan's provisions establish, rather than to ownership stakes, the employer's whims at renewal, or the presence of other coverage. Carriers must then make coverage available to those eligible employees.
Why the other options are wrong
- B) Eligibility is defined by law and the plan's provisions, not by unilateral employer preference at renewal.
- C) Ownership is not an eligibility condition under M.C.L. 500.3707.
- D) Having other coverage is not what makes an employee eligible; losing other coverage can instead trigger special enrollment under M.C.L. 500.3708.
Memory hook
Eligible employee = meets the law's and plan's conditions, nothing more.