State RegulationsMI specificDifficulty 1/5
Under Michigan's small-employer coverage law, health benefit plans offered to small employers are required to be:
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 C is correct
M.C.L. 500.3711 of the Michigan Insurance Code governs the renewability of small-employer health coverage and requires carriers to renew coverage subject only to grounds the law permits, such as nonpayment of premiums. Re-underwriting the group annually, mid-year cancellation, or demanding new insurability evidence at renewal would defeat the renewability protection.
Why the other options are wrong
- A) Annual re-underwriting of members is inconsistent with the renewability obligation in M.C.L. 500.3711.
- B) Mid-year cancel-at-will terms cannot override the statutory renewal right.
- D) Requiring insurability evidence at renewal contradicts the guaranteed-renewal structure of small-employer coverage.
Memory hook
Small groups renew as of right — pay premium, keep coverage.