Illinois Administrative Code
Title 50 - INSURANCE
Part 2012 - LONG-TERM CARE INSURANCE
Section 2012.123 - Suitability
Current through Register Vol. 48, No. 12, March 22, 2024
a) This Section shall not apply to life insurance policies that accelerate benefits for long-term care.
b) Every insurer, health care service plan or other entity marketing long-term care insurance (the "issuer") shall:
c) To determine whether the applicant meets the standards developed by the issuer:
d) The issuer shall use the suitability standards it has developed pursuant to this Section in determining whether issuing long-term care insurance coverage to an applicant is appropriate.
e) Insurance producers shall use the suitability standards developed by the issuer in marketing long-term care insurance.
f) At the same time as the personal worksheet is provided to the applicant, the disclosure form entitled "Things You Should Know Before You Buy Long-Term Care Insurance" shall be provided. The form shall be in the format found in Exhibit G, in not less than 12 point type.
g) If the issuer determines that the applicant does not meet its financial suitability standards, or if the applicant has declined to provide the information, the issuer may reject the application. In the alternative, the issuer shall send the applicant a suitability letter similar to the one found in Exhibit H. However, if the applicant has declined to provide financial information, the issuer may use some other method to verify the applicant's intent. Either the applicant's returned letter or a record of the alternative method of verification shall be made part of the applicant's file.
h) The issuer shall report annually by June 30 to the Director the total number of applications received from residents of this State, the number of those who declined to provide information on the personal worksheet, the number of applicants who did not meet the suitability standards, and the number of those who chose to confirm after receiving a suitability letter.