Under California law, what must an agent provide or do at the time of soliciting a long-term care insurance policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Section 10234.93(a)(8) requires every insurer to give a prospective applicant, at the time of solicitation, written notice that HICAP (the Health Insurance Counseling and Advocacy Program) provides health insurance counseling to senior California residents free of charge. The agent must provide the name, address, and telephone number of the local HICAP program as well as the statewide number, 1-800-434-0222. California also requires delivery of a shoppers guide from the Department of Aging before the application is presented and a notice-to-buyer warning on page one of the policy. These consumer-protection disclosures are frequently tested California LTC marketing rules.
Why the other options are wrong
- B) An agent soliciting LTC insurance does not process Medicare card applications; Medicare enrollment is handled through the Social Security Administration and CMS.
- C) Guaranteeing that the policy will cover all long-term care costs is prohibited; CIC Section 10234.93(a)(5) requires a notice warning that the policy may not cover all LTC costs.
- D) Suitability information is gathered through the personal worksheet, but complete medical records are not collected before a discussion at solicitation.
Memory hook
At solicitation: HICAP written notice + local contacts + 1-800-434-0222. Free counseling, no strings.