Sec.38a-528a-10. Suitability of recommended purchase

(a) A producer who recommends the purchase or replacement of a group or individual short-term care policy or certificate shall have reasonable grounds for believing that the recommendation is suitable for the applicant upon the basis of the facts, if any, disclosed by the applicant concerning his or her health and financial circumstances.

(b) Before selling any group short-term care certificate, a producer shall make reasonable efforts to obtain information concerning the applicant’s health and financial circumstances.

(c) Before issuing any group short-term care certificate, a direct response insurer shall have reasonable grounds for believing that the purchase of such certificate, whether or not it involves the replacement of existing coverage, is suitable for the applicant upon the basis of the facts, if any, disclosed by the applicant concerning his or her health and financial circumstances.

(d) Every direct response insurer shall include questions on its applications for group short-term care insurance that are reasonably designed to obtain information concerning the applicant’s health and financial circumstances.

(Effective August 24, 2018)