State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
Under California law (Section 10295 et seq.), when an accelerated death benefit tied to chronic illness is offered or advertised, the insurer must:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
California requires insurers offering accelerated death benefits for chronic illness to disclose clearly that the accelerated death benefit is different from long-term care insurance and should not be confused with an LTC policy. The disclosure helps consumers understand that the ADB pays a limited, policy-defined benefit, whereas an LTC policy covers long-term care services. Sections 10295 et seq. and 10234.93 govern the product and its marketing, protecting consumers from confusing the two products.
Why the other options are wrong
- B) Accelerated benefits still require the policyholder to meet the policy's chronic-illness or other eligibility criteria.
- C) There is no LTC-specialist licensing requirement for selling this rider.
- D) Advertising regulation is a state (CDI) matter, not a federal filing requirement.
Memory hook
ADB is not an LTC policy, and California makes sellers say so; no confusion allowed.