State RegulationsMI specificDifficulty 1/5
What renewability provision must an individual long-term care insurance policy contain under Michigan law?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.C.L. 500.3907 requires individual long-term care insurance policies in Michigan to be guaranteed renewable. The policyholder keeps the coverage by paying premiums, and the insurer cannot cancel or refuse renewal because the insured's health has declined or because claims have been paid, which is essential protection for a product purchased decades before care is needed.
Why the other options are wrong
- A) Discretionary renewal is the opposite of the guaranteed renewability the statute mandates.
- C) Guaranteed renewability is not cut off at a stated maximum age; it continues while premiums are paid.
- D) Annual requalification would let the insurer re-underwrite each year, which guaranteed renewability forbids.
Memory hook
LTC is guaranteed renewable: pay the premium, keep the policy.