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State RegulationsMI specificDifficulty 1/5

In Michigan, the "buyer's guide" that accompanies life insurance sales is best described as:

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Answer & full 3-part explanation (select an option above, or peek)

Why C is correct

Under Michigan's disclosure rules, M.C.L. 500.1371 to 500.1383, the buyer's guide is a generic educational publication that explains the basic types of life insurance and helps consumers think through how to compare policies. It is designed to be useful before a specific product is chosen, which is exactly why it is separate from the policy-specific policy summary. The Michigan Department of Insurance and Financial Services (DIFS) expects both documents to reach the applicant, each doing a different job in the sales process.

Why the other options are wrong

  • A) A roster of approved producers has nothing to do with the buyer's guide's educational purpose.
  • B) Rate comparisons against every competing insurer are not required content of the buyer's guide.
  • D) A summary of the specific policy's premiums and benefits describes the policy summary, not the buyer's guide.

Memory hook

The guide teaches; the summary specifies.

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