An agent who has never sold long-term care insurance wants to add a long-term care rider to the life policies she sells. Under California law, what training must she complete before selling?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
California Insurance Code Section 10234.93 requires agents who sell long-term care insurance, including LTC riders attached to life policies, to complete at least 8 hours of initial LTC training before selling, then 8 hours annually for the first four years and 8 hours every two years beginning in year five. This training is in addition to general continuing education requirements and is intended to ensure agents understand LTC products and can advise seniors appropriately. The pattern of refresher hours keeps agents current on a product sold mainly to seniors, and failure to maintain the training is a licensing compliance issue the Department of Insurance can act on.
Why the other options are wrong
- B) LTC riders are treated as long-term care products, so the 8-hour initial training requirement applies before any sale. Riders are covered products, so the same 8-hour initial training gate applies before any sale.
- C) Annuity suitability training is a separate 8-hour initial requirement for annuity sales; it does not satisfy the LTC training requirement. Annuity suitability hours are a different requirement and cannot be credited toward LTC training.
- D) General CE hours do not satisfy the LTC training mandate; the LTC training is a specific, separate requirement under Section 10234.93. General CE credit cannot substitute for the specific LTC training mandate in the code.
Memory hook
Before selling LTC riders: 8 hours up front, then 8 more each year for the first four.