State RegulationsMI specificDifficulty 3/5
A Michigan producer tells each of three applicants the same thing: 'you have a 10-day free look.' The three products are a life insurance policy, an annuity contract, and an individual LTC policy. For which client is the producer's statement wrong?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Michigan's 10-day free-look provisions cover life policies (M.C.L. 500.4015), annuity contracts (M.C.L. 500.4073), and disability/A&H policies (M.C.L. 500.3409) — but long-term care insurance is governed instead by M.C.L. 500.3943, which gives the purchaser 30 days after delivery to return the individual LTC policy for a full premium refund. Telling the LTC applicant that she has only 10 days misstates her statutory right by more than half, and DIFS expects producers to keep these product-specific periods straight.
Why the other options are wrong
- A) The life policy's 10-day free look under M.C.L. 500.4015 is correctly stated in this context.
- B) Annuity contracts do carry a free-look refund right of at least 10 days under M.C.L. 500.4073, so the statement is accurate there.
- D) The statement is not accurate for all three: the LTC applicant is entitled to 30 days under M.C.L. 500.3943.
Memory hook
Ten days for life and health, thirty for LTC: know which clock is running.