State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Under California Insurance Code Section 10234.8, insurers, agents, and others engaged in long-term care insurance owe policyholders and prospective policyholders which duty?
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 D is correct
CIC Section 10234.8(a) imposes on every insurer, broker, agent, and other person engaged in the business of LTC insurance a duty of honesty and a duty of good faith and fair dealing toward policyholders and prospective policyholders. This is the statutory statement of the ethical baseline for LTC sales in California. AH-V.2b anchors this consumer-protection duty.
Why the other options are wrong
- A) The statute creates a conduct duty, not any guarantee of premium refunds.
- B) Benefit amounts are set by the policy contract, not by a statutory duty of unlimited payment.
- C) Honesty and good faith are the stated duties; confidentiality is not elevated above them.
Memory hook
10234.8: be honest, act in good faith, deal fairly — the LTC golden rule in code.