Under Michigan's life insurance advertising rules, which of the following best describes an "advertisement"?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Michigan Administrative Code R 500.1371 defines an advertisement broadly: it is any material designed to create public interest in an insurance product or to induce the public to purchase, increase, or modify insurance coverage. The definition is medium-neutral, so printed pieces, broadcast spots, electronic promotions, and producer-prepared sales material all qualify. The practical consequence is that a producer's own flyer or social media post is subject to the same advertising standards as an insurer's official campaign, and the Michigan Department of Insurance and Financial Services (DIFS) can act against misleading material in any format.
Why the other options are wrong
- A) The advertising rules are not limited to print media; broadcast, electronic, and sales-presentation material all fall within the definition of an advertisement.
- C) Material prepared by producers and agencies for the public is just as much an advertisement as home-office material.
- D) Advertisements reach prospects before a policy is even applied for; the timing of policy delivery does not define what is an advertisement.
Memory hook
If it is designed to make the public want the policy, it is an advertisement.