State RegulationsMI specificDifficulty 2/5
A Michigan insurer reviewing an accident and health application has received the applicant's genetic test results. Under Michigan law, how may the insurer use those results?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.C.L. 500.3407b prohibits Michigan insurers from using genetic test results in underwriting decisions for accident and health coverage. The law keeps genetic information out of rating, acceptance, and exclusion decisions so that applicants are not penalized for predispositions they have not manifested.
Why the other options are wrong
- A: Surcharging a premium based on genetic test results is precisely the underwriting use the statute forbids.
- B: Using genetic results to exclude future claims is a prohibited underwriting application under M.C.L. 500.3407b.
- D: No applicant waiver makes genetic-test-based underwriting lawful in Michigan.
Memory hook
Genes are private — Michigan keeps them out of the underwriting file.