State RegulationsMI specificDifficulty 2/5
An insurer in Detroit holds claim and application information about a policyholder. Under M.C.L. 500.1371 through 500.1383, when may the insurer disclose that individual's insurance information?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.C.L. 500.1371 through 500.1383, part of the Michigan Insurance Code, permit disclosure of an individual's insurance information only in limited circumstances, principally when the individual authorizes it or the disclosure falls within the statute's permitted exceptions. Marketing convenience is not a permitted basis, and an absolute prohibition would defeat legitimate transactional needs, which is why the statute builds an authorization-plus-exceptions structure.
Why the other options are wrong
- A) Using insurance information for marketing beyond the statute's permitted purposes violates the use-and-disclosure limits of the Michigan Insurance Code.
- C) Publishing information in a trade journal would itself be an unlawful disclosure, not a prerequisite to one.
- D) The statute permits disclosure with the individual's authorization, so the rule is not an absolute prohibition.
Memory hook
Authorization or statutory exception — nothing else opens the file.