Chapter 5

The important points addressed in this lesson are:

general ethical principles in insurance sales
unethical practices and state regulations
professional codes of conduct
what factors should be considered when recommending LTC insurance
when is replacement of an existing LTC policy suitable
suitability factors to consider when contemplating a partnership LTC policy

The State of Florida has taken a very strong position on the issue of Unauthorized Entities. An Unauthorized Entity is an insurance company that is not licensed by the Florida Department of Financial Services. Agents and brokers have responsibility for conducting reasonable research into ensure that they are not writing policies or placing business with Unauthorized Entities. Lack of careful screening can result in significant financial loss for Florida residents due to unpaid claims and/or theft of premiums. Agents may be held liable when representing these Unauthorized Entities. It is an agent/broker's responsibility to give fair and accurate information regarding companies they represent. Any question about the authorized status of a company can be checked by calling the Florida Department of Financial Services at 1-800-342-2762. We urge all agents and brokers to adhere to this admonition.

Ethical Considerations

Suitability of Long Term Care Insurance
Replacing a LTC Policy
The Suitability of a Partnership LTCI Policy
Summary of Ethical Considerations & Suitability
Chapter 5 Review Questions