State RegulationsMI specificDifficulty 2/5
An applicant for an individual LTC policy in Michigan asks her producer when her health will be evaluated — once now, or again at every renewal. What is the correct answer under Michigan's LTC framework?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
M.C.L. 500.3907, within Michigan's LTC chapter, makes the individual LTC policy guaranteed renewable, which fixes the timing of underwriting: the insurer evaluates and prices the applicant's health once, at issue. Renewal does not reopen the health question — the insurer cannot re-underwrite the insured or condition renewal on her still qualifying, because that would undo the guarantee the statute requires. DIFS enforces this framework for policies sold in Michigan.
Why the other options are wrong
- B) Periodic medical requalification would convert the contract into conditionally renewable coverage, which M.C.L. 500.3907 does not permit.
- C) A claim is when benefits are measured against the policy's triggers, not when the insurer first evaluates the insured's health.
- D) No Michigan requirement re-underwrites LTC insureds on a 2-year cycle; the health evaluation happens at issue.
Memory hook
One exam, one underwriting: at issue — renewal never reopens the file.