State RegulationsMI specificDifficulty 2/5
A Michigan producer is preparing sales materials for an individual LTC policy. Which approach complies with Michigan's LTC marketing standards?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.C.L. 500.3942 sets the standards for marketing long-term care insurance in Michigan, and DIFS enforces them. Compliant marketing presents the policy's benefits, limits, exclusions, and waiting periods accurately so the applicant can make an informed decision. Depicting benefit triggers as formalities, misrepresenting existing coverage to force a replacement, or implying unlimited coverage are each misleading depictions of the contract that the marketing standards prohibit.
Why the other options are wrong
- A) Minimizing benefit triggers misrepresents how the policy works and violates the marketing standards.
- B) Disparaging existing coverage to induce replacement is misleading marketing and also implicates the LTC replacement rules.
- D) Implying unlimited care coverage overpromises benefits the contract does not provide.
Memory hook
Market the contract you actually wrote: benefits, limits, exclusions, waits.