State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
California law prohibits causing a policyholder to replace a long-term care policy when the replacement would result in which outcome?
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 10234.85 explicitly provides that nothing allows a person to cause a policyholder to replace an LTC policy when the replacement results in a decrease in benefits and an increase in premium, in addition to the general ban on unnecessary replacement. This protects consumers from churning that worsens their position. AH-V.2c anchors this anti-replacement abuse rule.
Why the other options are wrong
- A) Changing insurers alone is not prohibited; the forbidden combination is worse coverage at a higher price.
- B) The statute does not quantify a 50% benefit-increase threshold.
- C) Asset protection is a legitimate Partnership program goal, not a prohibited replacement outcome.
Memory hook
Never replace if it means fewer benefits for more money — that is the statutory line.