Under California's Senior Insurance protections (CIC Sections 785-789.10), an agent selling to a prospective insured aged 65 or older owes a duty of:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 785(a) provides that all insurers, brokers, agents, and others engaged in the transaction of insurance owe a prospective insured who is 65 years of age or older a duty of honesty, good faith, and fair dealing, and that this duty is in addition to any other duty, express or implied, that may exist. Section 785(b) further provides that conduct during the offer and sale of a policy or certificate preceding the purchase is relevant to any action alleging a breach of the duty of good faith and fair dealing. The protection therefore attaches at the point of the offer and sale, not merely after delivery, and it supplements all other duties the agent owes.
Why the other options are wrong
- D) The statutory duty runs to the prospective insured during the offer and sale process. It does not arise only after the policy has been delivered to the insured. This contradicts the governing rule explained above and therefore cannot be the correct answer.
- B) The senior insurance protections govern the offer and sale of coverage. The claims process is governed by other statutes and regulations, not by the duties created in Section 785. The controlling legal standard set out above demonstrates precisely why this option is incorrect.
- C) Section 785 creates an express special duty toward senior prospective insureds that is additional to ordinary contract law, so the agent does owe a special statutory duty. This choice misstates what the statute actually requires, so it must be eliminated from consideration.
Memory hook
Seniors get honesty, good faith, and fair dealing from the first pitch, not the first claim.