State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California Insurance Code Section 10234.85, an LTC policy that is the which policy sold to a policyholder within any 12-month period is presumed unnecessary?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
CIC Section 10234.85 creates a presumption that any third or greater long-term care policy sold to a policyholder within any 12-month period is unnecessary. The presumption does not apply when a policy is replaced solely to consolidate policies with a single insurer. AH-V.2c anchors this California-specific anti-churning rule for LTC coverage.
Why the other options are wrong
- A) A second policy in 12 months does not trigger the statutory presumption.
- C) The look-back is any rolling 12-month period, not the calendar year or a yearly first policy.
- D) The presumption keys on policies within 12 months, not five-year accumulations.
Memory hook
Three LTC policies in 12 months? Presumed churn, unless it's consolidation with one insurer.