PassSprint
Free Readiness Test

One rule, 2 ways the exam asks it. Same knowledge point, different phrasing — work through all of them, because the exam rarely reuses the wording.

State RegulationsTX specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5

Before taking an application for a long-term care policy in Texas, an agent must give the applicant a written document. What does that document 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 D is correct

Under 28 TAC 3.3832, the applicant must receive an Outline of Coverage that presents the policy's principal benefits, limitations and exclusions in a form the applicant can use to shop and compare. The document is a disclosure, not a rate guarantee: long-term care premiums remain subject to revision, and nothing in the outline freezes the applicant's premium for the life of the policy.

Why the other options are wrong

  • A) The outline is a disclosure document and does not guarantee that the premium will never be increased.
  • B) The insurer's loss ratio on the product is not what the required applicant document discloses.
  • C) The document covers the policy being applied for; it is not a listing of every rate the insurer has on file for all products.

Memory hook

Outline of Coverage: shop with it, but it does not freeze the price.

Spotted an error in this question? Report it →
State RegulationsTX specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5

A Texas agent is soliciting an application for an individual long-term care policy. Under the Texas long-term care disclosure rules, the outline of coverage and the long-term care insurance shopper's guide must be given to the applicant:

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 B is correct

Under 28 TAC 3.3832 and 3.3840, long-term care is treated as a complex, high-cost purchase, so the consumer-protection disclosures must arrive up front: the outline of coverage must be delivered at the time the coverage is first solicited, which for an agent solicitation means before or at the time the application is presented, and the shopper's guide must be delivered by the agent before the applicant completes the application. Handing them over only after issuance, or only on request, defeats the purpose of letting the applicant compare policies and understand the benefit triggers before committing money.

Why the other options are wrong

  • A) Disclosure is mandatory, not triggered by the applicant's written request.
  • C) Delivering the disclosures with the issued policy is too late to inform the purchasing decision.
  • D) The disclosure obligation is not limited to group coverage; it applies to the individual solicitation described.

Memory hook

Long-term care disclosures go out before the pen touches the application.

Spotted an error in this question? Report it →

Related Practice Questions