State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A California agent is selling a life policy with an accelerated death benefit for chronic illness. Under California law, the agent must:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
California law (CIC Section 10295 et seq. and Section 10234.93) requires an agent who sells a life insurance accelerated death benefit for chronic illness to disclose how it differs from a long-term care (LTC) insurance policy. The two products differ in benefit triggers, benefit types, and purpose; accelerated benefits are typically a lump sum or limited benefit drawn from the death benefit, while LTC insurance provides a structured daily benefit for care services.
Why the other options are wrong
- B) Selling the accelerated death benefit does not itself require an LTC license, though agents selling LTC riders or policies must complete LTC training.
- C) The agent must disclose differences, not guarantee that the accelerated benefit covers all LTC costs; it generally covers only a portion.
- D) The agent is required to explain the distinction from LTC, so refusing to discuss alternatives would violate the disclosure duty.
Memory hook
ADB for chronic illness is not an LTC policy, and California law forces the agent to say exactly how they differ.