Utah Admin. Code R590-285-18 - Suitability

(1) An insurer shall:

(a) develop and use suitability standards and procedures, including a suitability letter for an applicant, to determine whether the purchase or replacement of limited long-term care insurance is appropriate for the needs of the applicant;

(b) include in its suitability standards and procedure:

(i) consideration of the advantages and disadvantages of insurance to meet the needs of the applicant; and

(ii) discussion with the applicant how the benefits and costs of limited long-term care insurance compare with long-term care insurance;

(c) train its producers in its suitability standards and procedures; and

(d) maintain a copy of its suitability standards and procedures.

(2)

(a) If an insurer determines that the applicant does not meet its financial suitability standards, or if the applicant declines to provide the information, the insurer may reject the application.

(b) If the applicant declines to provide financial information, the insurer may use another method to verify the applicant's intent.

(3) The insurer shall include either the applicant's signed suitability letter or a record of the alternative method of verification as part of the applicant's file.

Notes

Utah Admin. Code R590-285-18

Adopted by Utah State Bulletin Number 2021-05, effective 2/23/2021 Adopted by Utah State Bulletin Number 2024-21, effective 10/22/2024