State RegulationsOH specificDifficulty 2/5
An Ohio producer is taking an application for long-term care insurance. To satisfy the appropriateness requirement for the recommended purchase, what must the producer do?
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 C is correct
OAC 3901-4-01(W) requires the agent or issuer to make reasonable efforts to determine whether the recommended purchase is appropriate by obtaining suitability information, including presenting the Long-Term Care Insurance Personal Worksheet (in the prescribed appendix format) at or prior to application. This ensures Ohio consumers are sold LTC coverage that fits their needs and financial circumstances.
Why the other options are wrong
- A) The free look is a statutory consumer right and cannot be waived as part of the application process.
- B) Suitability information comes from the applicant through the Personal Worksheet, not from a physician's financial report.
- D) Medicare claims verification is not part of the Ohio LTC appropriateness requirement.
Memory hook
Worksheet first, sale second: suitability starts on paper.