State RegulationsMI specificDifficulty 3/5
A Detroit agent delivers the buyer's guide to an applicant but does not provide a policy summary, arguing that the guide covers everything an applicant needs. Under Michigan disclosure rules, this practice is:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Michigan's disclosure framework, M.C.L. 500.1371 to 500.1383, treats the buyer's guide and the policy summary as two distinct required documents: the guide is generic education about life insurance, while the policy summary discloses the features of the actual policy being purchased. Delivering one does not satisfy the duty to deliver the other, so an agent who hands over only the guide remains noncompliant. The Michigan Department of Insurance and Financial Services (DIFS) can pursue the failure as a violation regardless of whether any complaint follows.
Why the other options are wrong
- A) The two documents serve different purposes, generic education versus policy-specific disclosure, so one cannot substitute for the other.
- C) An applicant's acknowledgment of receiving the buyer's guide does not cure the failure to deliver the policy summary.
- D) The compliance duty is violated at the time the required disclosure is not delivered, whether or not a complaint is ever filed.
Memory hook
Guide plus summary: both, always.