State RegulationsMA specificDifficulty 2/5
When offering a long-term care policy in Massachusetts, what must insurers offer to the applicant under 211 CMR 65.06(2)?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
211 CMR 65.06(2) requires Massachusetts long-term care insurers to offer the applicant a nonforfeiture benefit. Because long-term care policies are often carried for decades before benefits are needed, a policyowner who later stops paying premiums could otherwise lose everything paid in; the nonforfeiture option protects a portion of that value. Offering it is part of the Massachusetts Division of Insurance's benefit standards for long-term care within 211 CMR 65.00.
Why the other options are wrong
- A) A claim-triggered waiver of all future premiums is not the item 211 CMR 65.06(2) requires insurers to offer; the required offer is a nonforfeiture benefit.
- C) A guaranteed insurability rider is not the mandated offer under the Massachusetts long-term care benefit standards.
- D) Double-indemnity accidental death benefits belong to life insurance, not to the long-term care nonforfeiture framework.
Memory hook
Massachusetts makes insurers offer a nonforfeiture exit ramp for every LTC policy.