State RegulationsMI specificDifficulty 2/5
A Traverse City applicant with a history of treated hypertension is worried that her prior care will permanently bar long-term care coverage. Under Michigan's LTC regulatory framework, what is the role of a preexisting-condition limitation?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Michigan's LTC chapter addresses preexisting-condition limitation periods at M.C.L. 500.3911, within the broader LTC regulatory framework of the Michigan Insurance Code. The limitation is a temporary device: it can defer payment for conditions treated before the effective date, but only for the period the law allows. It is not a permanent exclusion, and it is not left to unrestricted insurer discretion, because DIFS oversees LTC policy forms and their required provisions.
Why the other options are wrong
- A) A preexisting-condition limitation is time-bounded; treating prior care as a permanent bar misstates the rule.
- C) Michigan law does not ban preexisting-condition limitations in LTC policies; it regulates the period they may run.
- D) The limitation period is governed by statute (M.C.L. 500.3911) and DIFS oversight, not by unrestricted insurer choice.
Memory hook
Preexisting limitation delays, it does not destroy: a clock, not a wall.