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?
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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.