State RegulationsPA specificDifficulty 1/5
Under Pennsylvania's long-term care suitability rule (31 Pa. Code 89a.121), a recommendation to purchase long-term care insurance must be based on:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
The suitability rule of 31 Pa. Code 89a.121 requires the producer to determine that a recommended long-term care purchase is appropriate in light of the applicant's financial circumstances, needs, and objectives. It works alongside the marketing standards of 31 Pa. Code 89a.120, which govern how the product may be presented. The Pennsylvania Insurance Department's premise is that long-term care coverage is a significant, individualized commitment — a recommendation must fit the person, not the producer's payout or a one-size template.
Why the other options are wrong
- A) Basing a recommendation on the producer's commission inverts the suitability rule; the fit must be to the applicant's needs.
- B) Suitability is inherently individual; a uniform recommendation ignores the very circumstances the rule requires the producer to assess.
- C) Age is one fact among many, but suitability on age alone disregards the financial circumstances and objectives the rule requires.
Memory hook
Suit the sale to the senior: needs and finances decide, not the commission sheet.