State RegulationsMI specificDifficulty 1/5
A Michigan life producer gives each life insurance applicant a calendar with an invoice value of $5.00 as part of a marketing campaign. Under M.C.L. 500.2024a, this practice is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
M.C.L. 500.2024a of the Michigan Insurance Code creates a specific exception to the anti-rebating rule: giving merchandise with an invoice value not exceeding $5.00 to each life insurance applicant is not an unlawful rebate. The $5.00 calendar falls exactly within the statutory ceiling, so the campaign is lawful, whereas anything above that value would violate M.C.L. 500.2024 and invite DIFS enforcement.
Why the other options are wrong
- B) The statute expressly carves out low-value merchandise, so not everything of value given to an applicant is a rebate — the $5.00 merchandise ceiling controls.
- C) The exception turns on the invoice value of the merchandise, not on whether the giver is an insurer or a producer.
- D) Merchandise within the statutory value limit is expressly permitted by M.C.L. 500.2024a, so an absolute prohibition is incorrect.
Memory hook
Michigan's giveaway ceiling: $5.00 of merchandise per life applicant, nothing more.