Suitability
What Does 'Suitability' Mean?
States require insurance professionals to determine whether Long-Term Care Insurance is suitable for the consumer before recommending a policy.
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States require insurance professionals to determine whether Long-Term Care Insurance is suitable for the consumer before recommending a policy. Under regulations adopted by most states based on the National Association of Insurance Commissioners (NAIC) Long-Term Care Insurance Model Regulation, producers and insurers must develop reasonable grounds to believe the coverage is appropriate for the applicant.To make that determination, the insurance professional must review information about the applicant’s financial situation, including income, assets, existing insurance coverage, financial goals, and the consumer’s ability to pay premiums over time without creating financial hardship.It also helps the Long-Term Care Insurance specialist to determine the amount of coverage and if the consumer could benefit from the long-term care partnership program.