Long Term Care Certification Practice Test

What must insurers selling long-term care insurance report to the Commissioner annually?

1. Report of applicants not meeting suitability

2. Details on agent training completion

3. Claims paid during the year

4. Number of newly licensed agents

The correct answer is: Report of applicants not meeting suitability

Insurers selling long-term care insurance are required to report on applicants who do not meet suitability standards annually. This reporting is essential for ensuring that policies are sold to individuals who are appropriate candidates for long-term care insurance, considering their financial situation, health condition, and other relevant factors. It helps regulatory authorities monitor compliance with suitability standards and protect consumers from purchasing policies that may not meet their needs, thereby promoting responsible selling practices within the industry. While the other options might involve important aspects of insurance operations or agent management, they do not directly align with the primary consumer protection focus of annual reporting requirements for insurers, which is to ensure policy suitability. Reporting on claims paid, agent training details, or the number of newly licensed agents, while relevant for insurance operations, does not address the critical issue of whether applicants are being appropriately evaluated for long-term care insurance needs.