State RegulationsPA specificDifficulty 2/5
A producer plans to replace a client's existing long-term care policy with a new one from another insurer. Under Pennsylvania's long-term care replacement standards (31 Pa. Code 89a.113 and 31 Pa. Code 89a.122), what must happen?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Pennsylvania's long-term care replacement rules, 31 Pa. Code 89a.113 and 31 Pa. Code 89a.122, require the established replacement procedures: the producer and insurer must determine whether the transaction replaces existing long-term care coverage, notify the existing insurer, and give the applicant the required notices that set out the comparison between the old and new policies. The client then decides with both descriptions in hand. The Pennsylvania Insurance Department watches long-term care replacements closely, because elderly consumers are particularly exposed to churn.
Why the other options are wrong
- B) Destroying the old policy is neither required nor proper; the client keeps the old policy and receives the comparison notices before deciding.
- C) The shopper's guide obligation is not waivable by client signature; it remains part of the disclosure framework.
- D) There is no unclaimed-return condition in the replacement rules; the process runs on notices and comparison, not on a return window.
Memory hook
LTC replacement = notice and compare — never destroy, never skip the guide.