State RegulationsMI specificDifficulty 2/5
A Michigan resident purchases an individual long-term care policy by direct response, through the mail, with no agent involved in the sale. What return right does she have?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.C.L. 500.3943 grants the 30-day right to return the policy for a full premium refund to both agent-sold and direct-response long-term care policies, and notice of the right must appear on the first page of the policy and in the summary of coverage. The sales channel does not change the statutory right under the Michigan Insurance Code.
Why the other options are wrong
- A) The statute expressly covers direct-response sales; the return right applies with or without an agent.
- C) 10 days is not the statutory period for long-term care, and the right is not halved for direct-response sales.
- D) 90 days is longer than the statutory 30-day return period.
Memory hook
Mail order or agent — either way, 30 days to return, M.C.L. 500.3943.