State RegulationsMI specificDifficulty 2/5
Michigan's required disclosure provisions for LTC policies, found at M.C.L. 500.3923, are primarily designed to:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.C.L. 500.3923, within Michigan's LTC chapter, establishes the disclosure provisions that LTC policies must carry, and their purpose is informed decision-making: the applicant receives, in mandated form, the information needed to understand what the policy covers, what it excludes, and how it compares with alternatives. The Michigan Department of Insurance and Financial Services (DIFS) oversees compliance, because undisclosed or obscured terms defeat the consumer-protection purpose of the LTC framework.
Why the other options are wrong
- A) The provisions exist to surface key terms for the applicant, not to hide them; obscuring terms would defeat their purpose.
- C) Disclosure provisions supplement and explain the contract; they do not overwrite the policy's actual language after a claim.
- D) The framework informs the applicant directly and does not transfer the comparison duty wholly to the producer.
Memory hook
Disclose to decide: 500.3923 puts the facts in the buyer's hands first.