Under CIC Section 10234.95, when and how must the Long-Term Care Insurance Personal Worksheet be presented to an applicant?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Section 10234.95(c)(1) requires the issuer and, where an agent is involved, the agent to make reasonable efforts to obtain suitability information by presenting the NAIC Long-Term Care Insurance Personal Worksheet to the applicant at or prior to application. The worksheet must be in at least 12-point type and contain at minimum the information in the NAIC worksheet. The worksheet gathers financial and needs information — ability to pay, goals for long-term care, and comparison with existing coverage — so the insurer can apply its suitability standards before issuing coverage. It is a cornerstone of California's LTC suitability regime.
Why the other options are wrong
- B) The worksheet must be presented at or before the application, not after issuance; a completed worksheet must be returned before the insurer considers the application.
- C) The worksheet is a pre-purchase suitability tool; it is not presented at claim time.
- D) The statute expressly requires at least 12-point type — the opposite of small print; readability is mandatory.
Memory hook
Worksheet before the signature in readable 12-point type — suitability check comes first.