<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s5ac819d6-9287-4834-bf66-37be68977969Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont-000000 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s5ac819d6-9287-4834-bf66-37be68977969000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont-000002 { color: #0000FF; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s5ac819d6-9287-4834-bf66-37be68977969Normal"><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont">    </span><span class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont-000000">20:06:21:53.01.  Suitability standards.</span><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont"> Every insurer, health care service plan or other entity marketing long-term care insurance, all referred to as the "issuer", shall:</span></p><p dir="ltr" class="s5ac819d6-9287-4834-bf66-37be68977969Normal"><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969000001"> </span></p><p dir="ltr" class="s5ac819d6-9287-4834-bf66-37be68977969Normal"><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont">    (1)  Develop and use suitability standards to determine whether the purchase or replacement of long-term care insurance is appropriate for the needs of the applicant;</span></p><p dir="ltr" class="s5ac819d6-9287-4834-bf66-37be68977969Normal"><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont">    (2)  Train its agents in the use of its suitability standards; and</span></p><p dir="ltr" class="s5ac819d6-9287-4834-bf66-37be68977969Normal"><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont">    (3)  Maintain a copy of its suitability standards and make them available for inspection upon request by the director.</span></p><p dir="ltr" class="s5ac819d6-9287-4834-bf66-37be68977969Normal"><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969000001"> </span></p><p dir="ltr" class="s5ac819d6-9287-4834-bf66-37be68977969Normal"><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont">    To determine if the applicant meets the suitability standards developed by the issuer, as required by this section, the agent and issuer shall develop procedures that consider the following:</span></p><p dir="ltr" class="s5ac819d6-9287-4834-bf66-37be68977969Normal"><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969000001"> </span></p><p dir="ltr" class="s5ac819d6-9287-4834-bf66-37be68977969Normal"><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont">    (1)  The ability to pay for the proposed coverage and other pertinent financial information related to the purchase of the coverage;</span></p><p dir="ltr" class="s5ac819d6-9287-4834-bf66-37be68977969Normal"><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont">    (2)  The applicant's goals or needs with respect to long-term care and the advantages and disadvantages of insurance to meet these goals or needs; and</span></p><p dir="ltr" class="s5ac819d6-9287-4834-bf66-37be68977969Normal"><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont">    (3)  The values, benefits, and costs of the applicant's existing insurance, if any, when compared to the values, benefits, and costs of the recommended purchase or replacement.</span></p><p dir="ltr" class="s5ac819d6-9287-4834-bf66-37be68977969Normal"><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969000001"> </span></p><p dir="ltr" class="s5ac819d6-9287-4834-bf66-37be68977969Normal"><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont">    </span><span class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont-000000">Source:</span><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont"> 28 SDR 157, effective </span><span class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont">May 19, 2002.</span></p><p dir="ltr" class="s5ac819d6-9287-4834-bf66-37be68977969Normal"><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont">    </span><span class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont-000000">General Authority:</span><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-4"><span class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont-000002">58-17B-4</span></a><span class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont">.</span></p><p dir="ltr" class="s5ac819d6-9287-4834-bf66-37be68977969Normal"><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont">    </span><span class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont-000000">Law Implemented:</span><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-4"><span class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont-000002">58-17B-4</span></a><span class="s5ac819d6-9287-4834-bf66-37be68977969DefaultParagraphFont">.</span></p><p dir="ltr" class="s5ac819d6-9287-4834-bf66-37be68977969Normal"><span xml:space="preserve" class="s5ac819d6-9287-4834-bf66-37be68977969000001"> </span></p></div></body></html>