State RegulationsFL specificDifficulty 2/5
A Department of Financial Services investigation finds that a Florida agent sold a long-term care policy without delivering the Buyer's Guide or the outline of coverage. What is the consequence?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Fla. Stat. 627.9407, long-term care sales must include the required disclosure documents — the Buyer's Guide and the outline of coverage — and a sale made without them violates Florida's LTC disclosure requirements. The Department of Financial Services can discipline the agent administratively for the violation, up to and including penalties and license action. Failing to disclose is treated seriously because LTC buyers are vulnerable to not understanding what they bought.
Why the other options are wrong
- A) The Buyer's Guide is a required disclosure, not optional marketing material.
- B) The law provides discipline for the violation; it does not automatically void the policy.
- D) The consequence falls on the agent's license and record, not a commission refund owed to the agent.
Memory hook
Skip the LTC disclosures, meet DFS discipline.