Long Term Care • Suitability • Sales Practices • Policy Replacement • Agent Documentation
Chapter 5 covers LTC sales practices, suitability, and agent responsibilities. The personal worksheet is the standardized suitability tool that evaluates whether a proposed LTC product is appropriate for a specific client. The Buyer’s Guide and Outline of Coverage describe policy features but do not assess individual suitability.
When recommending policy replacement, agents must compare policy language, tax and partnership status, how long the client has owned the existing policy, and any applicable premium lock-ins. The insurer’s identity is generally not a factor unless its financial condition is impaired. Partnership policies protect assets only (not income) equal to benefits paid — Medicaid qualification is not automatic and must still be applied for. The Agent’s Report allows the agent to disclose material facts not covered on the application. Agents should retain notes, fact-finding forms, and client correspondence as evidence of ethical conduct.