Plain version: long-term care buyers are often older and are making a large, long-term purchase. So California adds extra duties to the sale: the agent must be trained, must be honest about why they are calling, and must point the buyer to free, independent help.
Training before selling (§10234.93):
An agent must finish the initial 8 hours of LTC training before soliciting individual consumers. Being authorized by an insurer does not replace this training.
A licensee first licensed after January 1, 1992 needs 8 hours in each of the first four 12-month periods after the license is issued, then 8 hours before each license renewal.
Partnership policies require an extra 8 classroom hours on the Partnership.
HICAP and consumer materials:
At solicitation, the applicant must receive written notice that the Health Insurance Counseling and Advocacy Program (HICAP) provides free counseling to senior California residents. The agent also gives the local HICAP office's contact details and the statewide number. HICAP counsels consumers; it does not sell policies or approve applications.
Each prospective applicant must receive the LTC shoppers guide developed by the California Department of Aging before an application or enrollment form is presented.
The premium section of the LTC Insurance Personal Worksheet tells applicants where to get a rate guide comparing policies: the Department of Insurance consumer line, HICAP's toll-free line and the Department's website. The rate guide includes rate-increase history for the current year and the nine preceding years.
Duty of honesty, good faith and fair dealing (§10234.8): insurers, brokers, agents and others engaged in the business of insurance owe these duties to policyholders and prospective policyholders. The duty begins before the sale: conduct while offering and selling a policy is relevant in an action for breach.
Cold lead advertising (§10234.9(c); §10234.93(b)(3)):
A marketing method is prohibited cold lead advertising if it does not conspicuously disclose that a purpose of the marketing is to solicit insurance and that an agent or insurer will make contact.
A person who contacts a consumer because of information from a cold lead device must immediately disclose that fact.