Sec. 31.14.01.17. Appropriateness of Recommended Purchase

A. In recommending the purchase or replacement of any long-term care insurance policy or certificate, an agent shall make reasonable efforts to determine the appropriateness of a recommended purchase or replacement.

B. In recommending the purchase or replacement of any long-term care insurance policy or certificate, the insurer or its agent shall make a reasonable effort to identify whether a prospective applicant for long-term care insurance:

(1) Already has long-term care insurance, and the types and amounts of insurance;

(2) Had long-term care insurance in force during the last 12 months;

(3) Is covered or is eligible for coverage under the Medical Assistance Program (Medicaid); or

(4) Intends to replace an existing hospital, medical, surgical, or other health insurance coverage with long-term care insurance.