Section 4429 - Suitability standardsA.1. This section shall not apply to life insurance policies or riders containing accelerated long-term care benefits.2. For certificates issued on or after the effective date of this act, under a group long-term care insurance policy as defined in Section 4424 of Title 36 of the Oklahoma Statutes, which policy was in force at the time this act became effective, the provisions of this section shall not apply.B. Every provider of long-term care insurance 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 the Insurance Commissioner.C.1. To determine whether the applicant meets the standards developed by the provider, the agent and provider shall develop procedures that take the following into consideration:a. the ability to pay for the proposed coverage and other pertinent financial information related to the purchase of the coverage,b. 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, andc. 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.2. The provider and, where an agent is involved, the agent shall make reasonable efforts to obtain the information set out in paragraph 1 of this subsection. The efforts shall include, at or prior to application, providing the applicant with a personal worksheet and a disclosure form which have been prescribed by the Commissioner and are consistent with the National Association of Insurance Commissioners (NAIC) Long-Term Care Insurance Model Regulation.3. A completed personal worksheet shall be returned to the provider prior to the provider's consideration of the applicant for coverage, except that the personal worksheet need not be returned for sales of employer group long-term care insurance to employees and their spouses.4. The sale or dissemination outside the company or agency by the provider or agent of information obtained through the personal worksheet is prohibited.D. The provider shall use the suitability standards it has developed pursuant to this section and information furnished by the applicant in determining whether issuing long-term care insurance coverage to an applicant is appropriate.Okla. Stat. tit. 36, § 4429
Added by Laws 1995, c. 244, § 3, eff. 11/1/1995.