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PDFWAC 284-83-170

Form of personal worksheet.

The following form of personal worksheet must be used by issuers in the sale of long-term care insurance policies.
Long-Term Care Insurance
Personal Worksheet
People buy long-term care insurance for many reasons. Some don't want to use their own assets to pay for long-term care. Some buy insurance to make sure they can choose the type of care they get. Others don't want their family to have to pay for care or don't want to go on medicaid. But long-term care insurance may be expensive, and may not be right for everyone.
By state law, the insurance company must fill out part of the information on this worksheet and ask you to fill out the rest to help you and the company decide if you should buy this policy.
Premium Information
Policy Form Numbers                              
The premium for the coverage you are considering will be [$        per month, or $        per year,] [a one-time single premium of $       .]
Type of Policy (noncancellable or guaranteed renewable):                          
The Company's Right to Increase Premiums:                                        
[The company cannot raise your rates on this policy.] [The company has a right to increase premiums on this policy form in the future, provided it raises rates for all policies in the same class in this state.] [Issuers must use appropriate bracketed statement. Rate guarantees must not be shown on this form.]
Rate Increase History
The company has sold long-term care insurance since [year] and has sold this policy since [year]. [The company has never raised its rates for any long-term care policy it has sold in this state or any other state.] [The company has not raised its rates for this policy form or similar policy forms in this state or any other state in the last ten years.] [The company has raised its premium rates on this policy form or similar policy forms in the last ten years. Following is a summary of the rate increases.]
Questions Related to Your Income
How will you pay each year's premium?
□ From my Income □ From my Savings/Investments □ My Family will Pay
[□ Have you considered whether you could afford to keep this policy if the premiums went up, for example, by 20%?]
Note: The issuer is not required to use the bracketed sentence if the policy is fully paid up or is a noncancellable policy.
What is your annual income? (check one) □ Under $10,000 □ $[10-20,000] □ $[20-30,000] □ $[30-50,000] □ Over $50,000
Note: The issuer may choose the numbers to put in the brackets to fit its suitability standards.
How do you expect your income to change over the next 10 years? (check one)
□ No change □ Increase □ Decrease
If you will be paying premiums with money received only from your own income, a rule of thumb is that you may not be able to afford this policy if the premiums will be more than 7% of your income.
Will you buy inflation protection? (check one) □ Yes □ No
If not, have you considered how you will pay for the difference between future costs and your daily benefit amount?
□ From my Income □ From my Savings/Investments □ My Family will Pay
The national average annual cost of care in [insert year] was [insert $ amount], but this figure varies across the country. In ten years the national average annual cost would be about [insert $ amount] if costs increase 5% annually.
Note: The projected cost can be based on federal estimates in a current year. In the above statement, the second figure equals 163% of the first figure.
What elimination period are you considering? Number of days         Approximate cost $        for that period of care.
How are you planning to pay for your care during the elimination period? (check one)
□ From my Income □ From my Savings/Investments □ My Family will Pay
Questions Related to Your Savings and Investments
Not counting your home, about how much are all of your assets (your savings and investments) worth? (check one)
□ Under $20,000 □ $20,000-$30,000 □ $30,000-$50,000 □ Over $50,000
How do you expect your assets to change over the next ten years? (check one)
□ Stay about the same □ Increase □ Decrease
If you are buying this policy to protect your assets and your assets are less than $30,000, you may wish to consider other options for financing your long-term care.
Disclosure Statement
□ The answers to the questions above describe my financial situation.
□ I choose not to complete this information.
(Check one.)
□ I acknowledge that the issuer and/or its [agent] [insurance producer] (below) has reviewed this form with me including the premium, premium rate increase history and potential for premium increases in the future. [For direct mail situations, use the following: I acknowledge that I have reviewed this form including the premium, premium rate increase history and potential for premium increases in the future.] I understand the above disclosures. I understand that the rates for this policy may increase in the future. (This box must be checked).
(Applicant) (Date)
[□ I explained to the applicant the importance of completing this information.
[(Agent)] [(Insurance Producer)] (Date)
[Agent's] [Insurance Producer's] Printed Name:                             ]
[In order for us to process your application, please return this signed statement to [name of company], along with your application.]
[My [agent] [insurance producer] has advised me that this policy does not seem to be suitable for me. However, I still want the company to consider my application.
Signed:                                       ]
(Applicant) (Date)
Drafting Note: Choose the appropriate sentences depending on whether this is a direct mail or [agent] [insurance producer] sale.
The company may contact you to verify your answers.
Note: When the Long-Term Care Insurance Personal Worksheet is furnished to employees and their spouses under employer group policies, the text from the heading "Disclosure Statement" to the end of the page may be removed.
[Statutory Authority: RCW 48.02.060, 48.83.070, 48.83.110, 48.83.120, 48.83.130(1), and 48.83.140 (4)(a). WSR 08-24-019 (Matter No. R 2008-09), § 284-83-170, filed 11/24/08, effective 12/25/08.]
Reviser's note: The brackets and enclosed material in the text of the above section occurred in the copy filed by the agency.
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