State RegulationsMI specificDifficulty 2/5
A producer takes an LTC application in Flint but never provides the applicant with the shopper's guide. What has the producer done?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.C.L. 500.3937 ties the shopper's guide to the LTC sales process itself: the document must be furnished so the applicant can understand and compare coverage before buying. It is neither an on-request extra nor a post-claim document, and delivering a different disclosure document does not discharge the duty. The Michigan Department of Insurance and Financial Services (DIFS) treats failure to furnish required consumer materials as a compliance failure in the sale.
Why the other options are wrong
- A) The guide is not optional or request-triggered; the statutory duty attaches to the sale.
- B) The guide is a pre-purchase consumer document, not something owed only by the insurer after a claim arises.
- D) The summary of coverage and the shopper's guide are separate required disclosures; supplying one does not excuse omitting the other.
Memory hook
No guide, no go: the LTC sale needs the shopper's guide up front.