State RegulationsMI specificDifficulty 1/5
Under the Michigan Long-Term Care Partnership Program, what inflation protection must a qualified policy include for an applicant who is 61 to 75 years of age at purchase?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under the Michigan Long-Term Care Partnership Program disclosed by the Michigan Department of Insurance and Financial Services (DIFS), the inflation protection requirement scales with age at purchase: applicants 60 and younger must have compound annual inflation protection, applicants 61 to 75 must have some level of inflation protection, and for applicants 76 or older it is optional. So a buyer in the 61 to 75 band must take some inflation protection, though not necessarily the full compound annual level required of younger buyers.
Why the other options are wrong
- B) The middle age band cannot skip inflation protection entirely; some level is required.
- C) Full compound annual protection at 5% or better is the requirement for applicants 60 and younger, not for the 61 to 75 band.
- D) A delayed-start inflation benefit is not the structure the Partnership Program requires for this age band.
Memory hook
Partnership ages: 60 and under compound, 61 to 75 some protection, 76 and up optional.