State RegulationsMI specificDifficulty 2/5
A producer mails a circular to residents of Jackson that charts a universal life policy's current interest credits. Under Michigan Administrative Code R 500.1371 through R 500.1387, what must the producer ensure?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Michigan Administrative Code R 500.1371 through R 500.1387 prohibit advertising that is misleading, including presenting non-guaranteed elements such as current interest credits as though they were guaranteed. Current rates may be shown, but the advertisement must make clear what is and is not guaranteed; misrepresentation in advertising also violates M.C.L. 500.2005 under the Michigan Insurance Code.
Why the other options are wrong
- A) The circular has no connection to an existing insurer; filing obligations in replacement situations run to the replacing insurer, not to advertisers.
- B) Mass advertising does not require recipient consent; the rules regulate content, not delivery permission.
- C) Stating that MLHIGA guarantees all values would itself be an unlawful misrepresentation of guaranty-association coverage under M.C.L. 500.2005.
Memory hook
Show current rates, but never call them guaranteed.