L&HMImedium
Which sanction is most directly authorized against a Michigan producer who knowingly fails to comply with the disclosure and notice requirements of the replacement rule?
AAutomatic rescission of every policy the producer has ever sold, regardless of whether it involved a replacement or caused consumer harm
BMandatory criminal felony prosecution by the U.S. Attorney
CLoss of the producer's FINRA registration only
DIFS administrative discipline including license suspension, revocation, and civil penalties
Why this is the answer
Violations of Mich. Admin. Code R 500.601-635 expose the producer to DIFS administrative action, including license suspension or revocation, civil monetary penalties, and orders to make restitution to harmed consumers.
Studying for the MI Life & Health exam?
This question comes from our L&H bank. Take a free practice test — no signup.