State RegulationsMI specificDifficulty 2/5
An applicant asks a Michigan producer what protection she has if she buys an individual LTC policy and later finds it does not fit her needs. How do the required disclosure provisions and the right to return work together under Michigan law?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Michigan's LTC framework pairs two protections: the disclosure provisions of M.C.L. 500.3923 ensure the applicant receives the policy information needed to make an informed choice before purchase, and M.C.L. 500.3943 preserves a post-purchase remedy — the right to return the individual policy within 30 days after delivery for a full premium refund. Disclosure is the front-end safeguard and the return right is the backstop; neither replaces the other, and DIFS enforces both.
Why the other options are wrong
- B) Fuller disclosure does not shorten the return period; M.C.L. 500.3943 sets 30 days regardless.
- C) The return right is unconditional on the buyer's side; it does not depend on proving an omission by the insurer.
- D) Satisfying the disclosure requirements does not waive the purchaser's statutory right to return the policy.
Memory hook
Disclose before, return after: two doors out of a bad fit.