State RegulationsMI specificDifficulty 2/5
An insurer in Lansing is preparing a marketing campaign for a new accident and health policy. Under the Michigan Administrative Code's advertising rules for accident and health insurance (R 500.651 to R 500.669), the campaign materials must:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
The Michigan Administrative Code advertising rules for accident and health insurance (R 500.651 to R 500.669) require that advertisements for A&H products be truthful and not misleading with respect to the policy's benefits, terms, and conditions. Misleading ads can induce applicants to buy coverage that does not work as advertised, so the rules reach every form of solicitation and are enforced by DIFS through the Insurance Director.
Why the other options are wrong
- A) The truthfulness requirement applies to every advertisement for accident and health coverage; there is no filing exception for guaranteed renewable products that relaxes the accuracy duty.
- B) The rules govern the accuracy and content of advertising, not the number of pages an ad may occupy.
- D) Consumer advertisements are not required to reproduce the insurer's annual financial statement; the duty is truthful representation of the product, not full financial disclosure.
Memory hook
A&H ads: true, complete, not misleading — that is the whole ballgame.