State RegulationsMI specificDifficulty 1/5
For a Michigan Long-Term Care Partnership applicant age 76, what does the DIFS Partnership Program disclosure require regarding inflation protection?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under the Michigan Long-Term Care Partnership Program disclosure from the Michigan Department of Insurance and Financial Services (DIFS), inflation protection is optional for applicants age 76 and older. The tiered structure of the program (mandatory compound protection for the youngest applicants, some level of protection in the 61 to 75 band, and optional protection at 76 and older) reflects the diminishing span between purchase and probable claim.
Why the other options are wrong
- B) Compound annual inflation protection is mandatory only for applicants age 60 and under.
- C) A guaranteed periodic increase right is one of the qualifying inflation options in the general offer rule, not a mandate for this oldest tier.
- D) Mandatory 'some level' protection belongs to the 61 to 75 band, not to applicants age 76 and older.
Memory hook
76 and up: inflation protection is the applicant's call, not the state's.