State RegulationsMI specificDifficulty 1/5
Michigan law requires that the summary of coverage provided with a long-term care policy include a benefit-comparison graphic showing how a level benefit compares with an inflation-adjusted benefit over a period of:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
The summary of coverage that must accompany a Michigan long-term care policy includes a graphic comparing benefits over a 20-year horizon, so the applicant can see how a level benefit erodes against an inflation-protected one. This disclosure duty is part of Michigan's inflation protection rule at M.C.L. 500.3909 within the long-term care chapter (M.C.L. 500.3901 to 500.3955), and its purpose is to make the cost of declining inflation protection visible before purchase.
Why the other options are wrong
- A) A 5-year comparison would seriously understate long-run benefit erosion and is not the statutory disclosure period.
- B) A 10-year graphic is not what the Michigan summary-of-coverage requirement specifies.
- C) A 12-year graphic is not the required comparison period under the Michigan disclosure rule.
Memory hook
The summary shows two decades of benefit comparison: the 20-year picture.