Rule 20:06:21:53.01 Suitability standards.
20:06:21:53.01. Suitability standards. Every insurer, health
care service plan or other entity marketing long-term care insurance, all
referred to as the "issuer", shall:
(1) Develop and use
suitability standards to determine whether the purchase or replacement of
long-term care insurance is appropriate for the needs of the applicant;
(2) Train its agents in the
use of its suitability standards; and
(3) Maintain a copy of its
suitability standards and make them available for inspection upon request by
To determine if the applicant meets
the suitability standards developed by the issuer, as required by this section,
the agent and issuer shall develop procedures that consider the following:
(1) The ability to pay for
the proposed coverage and other pertinent financial information related to the
purchase of the coverage;
(2) The applicant's goals
or needs with respect to long-term care and the advantages and disadvantages of
insurance to meet these goals or needs; and
(3) The values, benefits,
and costs of the applicant's existing insurance, if any, when compared to the
values, benefits, and costs of the recommended purchase or replacement.
28 SDR 157, effective May 19, 2002.
Authority: SDCL 58-17B-4.
Implemented: SDCL 58-17B-4.
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