State RegulationsMI specificDifficulty 2/5
When an application for an individual accident and health policy is completed in Michigan, by what point must the applicant be given the outline of coverage under Michigan Administrative Code R 500.656–.658/.661?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The Michigan Administrative Code outline of coverage rules R 500.656–.658/.661 require that the outline of coverage be delivered to the applicant no later than the time of application. Delivering the standardized summary at application ensures the applicant reviews the benefits, exclusions, and terms before committing to the purchase, which is the entire consumer-protection purpose of the document; waiting until delivery or later would defeat the comparison function the rules are built on.
Why the other options are wrong
- B) Post-delivery timing is too late under the rules and confuses the outline with the 10-day free-look concept that applies to policy return.
- C) Delivery is required by rule at application; it does not depend on the applicant asking in writing.
- D) The free-look period is a cancellation right after delivery; the outline is due far earlier, at application.
Memory hook
Outline at application, never after.