State RegulationsMI specificDifficulty 2/5
Before buying an individual LTC policy in Michigan, an applicant wants to see how the daily benefit would grow under the inflation protection option compared with a level benefit over time. Which document contains that comparison?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The summary of coverage required for Michigan LTC policies under M.C.L. 500.3933 must include the benefit-comparison graphic mandated by M.C.L. 500.3909, which projects a level benefit against an inflation-adjusted benefit over a 20-year horizon. That graphic exists precisely so the applicant can weigh the inflation protection decision with eyes open before purchase, and DIFS treats the summary as a core disclosure document rather than marketing material.
Why the other options are wrong
- B) An appointment certificate evidences the producer's licensing status and says nothing about future benefit values.
- C) Annual statements report the insurer's financial condition, not a comparison of this policy's benefit trajectories.
- D) Claim forms come into play only after a loss and contain no prospective benefit comparison.
Memory hook
Want to see your benefit grow? The summary of coverage draws the picture.