State RegulationsMI specificDifficulty 2/5
A producer replaces a client's existing long-term care policy with a new one from a different insurer. The old policy's preexisting-condition and probationary periods had been partially satisfied. Under M.C.L. 500.3917, the new policy must:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.C.L. 500.3917 requires that when a long-term care policy is replaced, the preexisting-condition and probationary periods in the new policy be waived for similar benefits to the extent they were satisfied under the prior policy. This prevents duplicative waiting periods when a Michigan consumer changes carriers.
Why the other options are wrong
- A) Restarting the full periods is exactly what the waiver rule in M.C.L. 500.3917 forbids.
- C) No blanket 2-year denial period is authorized for replacement policies.
- D) The statute places the obligation on the new policy's time periods, not on the prior insurer's claims.
Memory hook
LTC replacement = credit the old waiting period, M.C.L. 500.3917.