State RegulationsMI specificDifficulty 1/5
Under Michigan's small-employer coverage law, which statement best describes a carrier's obligation regarding employee eligibility?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
M.C.L. 500.3707 of the Michigan Insurance Code governs the eligibility of employees for small-employer coverage and requires carriers to make coverage available to the eligible employees of a small employer as Michigan law provides. Carriers cannot cherry-pick individuals out of an eligible group, and eligibility does not depend on union status or corporate title.
Why the other options are wrong
- A) Individual rejection of eligible employees conflicts with the availability obligation in M.C.L. 500.3707.
- B) Collective bargaining agreements do not displace the statutory eligibility framework.
- C) Ownership or officer status is not a prerequisite; ordinary employees are the focus of M.C.L. 500.3707.
Memory hook
Eligible means eligible — the carrier cannot hand-pick.