State RegulationsMI specificDifficulty 2/5
A producer in Grand Rapids is asked to sell a Medicare supplement policy to a client who enrolled only in Medicare Part A and declined Part B. Under Michigan law, what may the producer do?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.C.L. 500.3821 prohibits issuing a Medicare supplement policy or certificate to a person who is not enrolled for both Medicare Part A and Part B. Eligibility for the product therefore depends on full Medicare enrollment, and the producer must decline the sale until the client enrolls in Part B under the Michigan Insurance Code.
Why the other options are wrong
- A) M.C.L. 500.3821 bars issuance entirely; a preexisting-condition waiting period cannot cure the client's ineligibility.
- B) No written acknowledgment can override the Parts A and B enrollment requirement of M.C.L. 500.3821.
- D) Limiting the benefits to hospital expenses does not excuse the enrollment requirement; the prohibition applies to the product, not the benefit mix.
Memory hook
No A and B, no Medigap — M.C.L. 500.3821.