State RegulationsMI specificDifficulty 1/5
Which Michigan authority oversees insurers' and producers' compliance with the required provisions and marketing standards for long-term care insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
The Michigan Department of Insurance and Financial Services (DIFS) administers and enforces the long-term care provisions of the Michigan Insurance Code (M.C.L. 500.3901-.3955), covering required policy provisions, disclosure duties, and marketing standards. DIFS reviews policy forms, polices market conduct, and disciplines licensees who fall short, which makes it the state authority a Michigan LTC producer answers to.
Why the other options are wrong
- A) The NAIC develops model laws and coordination among states; it does not enforce Michigan's LTC requirements.
- C) CMS administers federal Medicare programs; Michigan LTC required provisions and marketing standards are state-enforced.
- D) Internal compliance reviews do not replace state regulatory oversight; the insurer remains answerable to DIFS.
Memory hook
Michigan LTC rules run through DIFS — not the feds, not the NAIC.