State RegulationsMI specificDifficulty 1/5
An insurer in Flint declines to enroll a policyholder's newborn because the child is not claimed as a tax dependent on the policyholder's return. Under Michigan law, is the decline permissible?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.C.L. 500.3403(2) bars denial of newborn enrollment on the ground that the child is not claimed as a tax dependent, along with the out-of-wedlock and residence grounds. The Michigan Department of Insurance and Financial Services (DIFS) treats tax-dependency-based refusals as violations of the Michigan mandate.
Why the other options are wrong
- A) Tax dependency is expressly not a valid Michigan denial ground under M.C.L. 500.3403(2).
- C) A blanket tax-dependency test for dependents conflicts with the Michigan statute.
- D) No 90-day cure procedure appears in the Michigan provision — the denial ground itself is prohibited.
Memory hook
No tax return? Still covered — tax status cannot block a Michigan newborn.