State RegulationsPA specificDifficulty 2/5
Pennsylvania's long-term care rules require insurers to make a shopper's guide available to consumers (31 Pa. Code 89a.127). What is the purpose of that requirement?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
The shopper's guide requirement of 31 Pa. Code 89a.127 exists to give consumers an objective, standardized education in long-term care insurance before a sale — how the coverage works, what it typically costs, and which features to compare. It complements the outline of coverage required by 40 P.S. § 991.1111: the guide teaches the market, the outline describes the specific policy. The Pennsylvania Insurance Department supplies the guide so the educational voice is the regulator's, not the seller's.
Why the other options are wrong
- A) The guide is an educational document furnished under the department's oversight; it is not an insurer marketing piece for its most profitable products.
- C) Recording producer compensation is handled through other regulatory filings, not through the shopper's guide.
- D) The shopper's guide never replaces the outline of coverage, and it is a pre-sale education tool, not a claims document.
Memory hook
Guide before the sale, outline for the policy — one teaches, the other describes.