State RegulationsFL specificDifficulty 2/5
Under Florida law, may an insurer cancel or refuse to renew a long-term care policy because the insured has grown older or her health has deteriorated?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Fla. Stat. 627.9407(3)(a), a long-term care policy may not be cancelled or nonrenewed solely because of the insured's age or any deterioration of the insured's health. This guarantees that the people most likely to need long-term care cannot be dropped precisely when their health declines. Renewal in a long-term care policy is protected against the two grounds insurers would otherwise find most profitable to use.
Why the other options are wrong
- A) Long-term care policies are not freely nonrenewable for any reason; age and health deterioration are expressly protected grounds.
- C) Entering a nursing home is a covered event, not a permitted trigger for cancelling or nonrenewing the policy.
- D) The protection against nonrenewal for age or health deterioration is not limited by the policy's first 2 years in force.
Memory hook
Older or sicker? The LTC plan stays.