State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California law, replacement of long-term care coverage is contingent on the insurer declaring which of the following?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
CIC Section 10234.97(a) makes replacement contingent on the insurer's declaration, pursuant to Section 10235.16, that the replacement policy materially improves the position of the insured. This requirement works with the premium-difference commission rule to discourage replacements that do not genuinely help the policyholder. AH-V.2f anchors this California replacement safeguard.
Why the other options are wrong
- A) The insured's age does not control the material-improvement declaration.
- B) The statute imposes no ten-year age requirement on the original policy.
- C) A higher premium alone would not justify replacement; the test is material improvement.
Memory hook
No replacement without a signed declaration: the new policy must materially improve the insured's lot.