Mich. Admin. Code R. 500.656 - Exceptions, reductions, and limitations

Current through Vol. 22-05, April 1, 2022

Rule 6.

(1) When an advertisement which is an invitation to contract refers to a dollar amount, a period of time for which a benefit is payable, the cost of the policy, a specific policy benefit, or the loss for which the benefit is payable, the advertisement shall also disclose those exceptions, reductions, and limitations affecting the basic provisions of the policy without which the advertisement would have the capacity or tendency to mislead or deceive.
(2) When a policy contains a waiting, elimination, probationary, or similar time period between the effective date of the policy and the effective date of coverage under the policy at a time period between the date a loss occurs and the date benefits begin to accrue for the loss, an advertisement which is subject to the requirements of subrule (1) of this rule shall disclose the existence of the period.
(3) The use of words or phrases in a context which understates the extent of the policy's exceptions, reductions, or limitations is considered misleading. An advertisement shall not use the word "only," "just," "merely," "minimum," or "necessary" or similar words or phrases to describe the applicability of any exceptions and reductions.


Mich. Admin. Code R. 500.656
1979 AC; 1991 AACS

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