State RegulationsMI specificDifficulty 3/5
For a Michigan long-term care Partnership qualified policy issued after December 31, 2007, what inflation-protection requirement applies to an applicant who is age 63?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under DIFS guidance (FIS_2310) for Michigan long-term care Partnership qualified policies issued after December 31, 2007: applicants age 60 and under must have compound annual inflation protection, applicants age 61 to 75 must be offered some level of inflation protection, and for applicants age 76 and older inflation protection is optional. An applicant age 63 falls in the middle band, so some level of inflation protection must be offered.
Why the other options are wrong
- A) Full compound annual protection is required only for applicants age 60 and under.
- C) Optional treatment begins for applicants age 76 and older, not at age 63.
- D) The rules require an offer of inflation protection in every age band; none prohibits it.
Memory hook
Partnership bands: 60 and under compound, 61 to 75 some, 76+ optional.