State RegulationsNY specificDifficulty 1/5
What is the primary purpose of the New York rules that govern replacement of long-term care insurance policies?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Reg 62 (11 NYCRR Part 52), New York's long-term care replacement rules are consumer-protection measures. As insureds age under a policy they accumulate valuable rights - benefit levels, expiring preexisting-condition exclusions, and premium history - that a hasty replacement can wipe out. The disclosure and notice requirements exist so that replacements happen with the insured's eyes open, not to lock insureds into one policy forever.
Why the other options are wrong
- A) Replacement is lawful; the rules regulate how it is done, they do not ban changing insurers.
- B) Premium taxation has nothing to do with replacement disclosure; the rules protect the policyholder, not the tax rolls.
- C) The rules govern agents and insurers soliciting new business; they create no mechanism for shedding old liabilities.
Memory hook
Replacement rules guard what the insured already owns.