State RegulationsMI specificDifficulty 1/5
Michigan's false information and advertising provision makes it unlawful for any person to:
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. 500.2007 of the Michigan Insurance Code prohibits issuing, publishing, or circulating false information about the business of insurance or the financial condition of a person engaged in the insurance business. False statements that an insurer is in financial trouble can frighten policyholders into surrendering sound policies, so the provision targets that deception directly, with enforcement by the director through DIFS.
Why the other options are wrong
- A) Truthfully advertising a feature the policy genuinely contains is lawful; the advertising rules, including Michigan Administrative Code R 500.651 to R 500.669, require accuracy, which this ad satisfies.
- C) Mailing required renewal notices is a statutory duty owed to policyholders, not an advertising violation.
- D) No Michigan provision prohibits a licensed agency from using the word "insurance" in its name; the concern is deception about coverage, not the word itself.
Memory hook
500.2007 = no fake news about insurers' finances or products.