Rule 20:06:21:53.02 Suitability -- Long-term care insurance personal worksheet.
20:06:21:53.02. Suitability - Long-term care insurance personal
worksheet. The issuer, and when an agent is involved, the agent, shall make
reasonable efforts to obtain the information set out in � 20:06:21:53.01.
The efforts must include presentation to the applicant, at or prior to
application, the "Long-Term Care Insurance Personal Worksheet." The
personal worksheet used by the issuer must contain, at a minimum, the
information in the format contained in Appendix E, in not less than 12 point
type. The issuer may request the applicant to provide additional information to
comply with its suitability standards. A copy of the issuer's personal
worksheet shall be filed with the director.
A completed personal worksheet shall
be returned to the issuer prior to the issuer's consideration of the applicant
for coverage, except the personal worksheet need not be returned for sales of
employer group long-term care insurance to employees and their spouses. The
sale or dissemination outside the company or agency by the issuer or agent of
information obtained through the personal worksheet in Appendix E is
The issuer shall use the suitability
standards it has developed pursuant to � 20:06:21:53.01 in determining
whether issuing long-term care insurance coverage to an applicant is
appropriate. Agents shall use the suitability standards developed by the issuer
in marketing long-term care insurance. 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 must be in the format contained in
Appendix F in not less than 12 point type.
28 SDR 157, effective May 19, 2002.
Authority: SDCL 58-17B-4.
Implemented: SDCL 58-17B-4.
Back to 20:06:21