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:
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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.