State RegulationsMI specificDifficulty 2/5
A policyholder in Ann Arbor enrolls her newborn, who lives with grandparents in another town and is not on the policyholder's tax return. The insurer refuses enrollment, citing the living arrangement. What is the outcome under Michigan law?
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
M.C.L. 500.3403(2) prohibits denying newborn enrollment because the child does not reside with the insured or in the service area, and the tax-return status is equally irrelevant. The insurer must honor the enrollment, and the Michigan Department of Insurance and Financial Services (DIFS) handles complaints on such refusals.
Why the other options are wrong
- A) Residence-based denial is expressly prohibited by M.C.L. 500.3403(2).
- C) No 31-day move-in requirement exists in the Michigan newborn provision.
- D) Michigan law requires enrollment, not a surcharge — converting a prohibited denial into pricing is also improper.
Memory hook
Where the baby sleeps cannot decide Michigan newborn coverage.