State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
When a producer presents an accelerated death benefit product as an alternative to long-term care insurance, what must the producer do?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
California requires producers to disclose the differences between accelerated death benefits for chronic illness and long-term care insurance policies, per CIC Section 10295 et seq. and Section 10234.93, so clients understand that an ADB is not an LTC policy. This disclosure duty prevents misrepresentation of the two products as interchangeable. LIFE-I.C.2.21 anchors this ADB-versus-LTC disclosure requirement.
Why the other options are wrong
- B) An ADB is capped by the life policy's face amount and cannot be guaranteed to cover all costs.
- C) The law mandates disclosure, not the mandatory pairing of a standalone LTC policy with every life sale.
- D) Annual filing of ADB endorsements is not the producer's statutory duty.
Memory hook
Selling ADB as an LTC stand-in? Disclose the difference first — the law demands it.