Life & Health Insurance Practice Exam 2025 – Your All-in-One Guide to Exam Success!

Question: 1 / 470

What is required if a new LTC policy is replacing an existing policy?

A new medical examination for the insured

Documentation of beneficial changes in coverage

Signed acknowledgment from both agent and applicant

When a new Long-Term Care (LTC) policy is replacing an existing one, it is essential for both the agent and the applicant to acknowledge the replacement. This requirement is in place to ensure that the applicant understands the implications of replacing an existing policy, including potential gaps in coverage or changes in benefits. The signed acknowledgment from both parties serves as a formal recognition that the applicant is aware of the replacement and has considered the factors involved, such as the benefits and potential costs of the new policy compared to the old one.

This acknowledgment protects consumers by making sure they are informed about their decisions and helps facilitate a better understanding of their insurance needs. It also promotes ethical practices in the insurance industry by holding agents accountable to their clients.

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Submission of a cancellation request for the old policy

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