State RegulationsFL specificDifficulty 1/5
A licensed Florida agent is completing the sale of a long-term care insurance policy. Under Florida law, what is the primary purpose of the buyer's guide and outline of coverage delivered to the applicant?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 627, Florida Statutes, long-term care disclosure standards require delivery of a buyer's guide and an outline of coverage so the applicant can evaluate what the policy actually pays, what it excludes, and how it compares with alternative coverage before purchase. Practically, an applicant who receives these documents can make an informed buying decision and is far less likely to be misled about the true scope of long-term care benefits.
Why the other options are wrong
- A) The buyer's guide is an educational disclosure, not a guarantee of claim payment; claims remain subject to the policy's terms and the insurer's verification.
- C) The policy contract itself controls in a benefit dispute; the outline of coverage summarizes the policy but never replaces it as the governing document.
- D) Commission arrangements between agents and insurers are separate contractual matters that have nothing to do with the buyer's guide or outline of coverage.
Memory hook
Buyer's guide = informed comparison, never a claims guarantee.