The NAIC (National Association of Insurance Commissioners) Long-Term Care Model Act sets standards for the regulation of long-term care insurance. Let's analyze the options:
a) Insurer A requires all applicants to reveal information about current policies held and whether they intend to replace an existing policy.
This is a common practice and is generally permissible. Insurers often ask about existing coverage to assess the applicant's overall insurance needs and to ensure responsible selling practices.
b) Insurer B provides the applicant with a state-published buyer's guide to LTC insurance instead of the NAIC's Shopper's Guide to Long-Term Care Insurance.
This could potentially be a violation if the state-published buyer's guide does not meet the standards set forth by the NAIC. Compliance with the NAIC guidelines is typically required.
c) Insurer C discloses its rate increase history before the application is accepted.
This is generally a permissible and ethical practice. Transparency about rate increase history allows consumers to make informed decisions about purchasing long-term care insurance.
d) Insurer D offers its customers fast automatic issuing of policies and handles underwriting later when claims are submitted.
This practice might be considered problematic. Underwriting is typically done before the issuance of policies to assess the risk and set appropriate premiums. Handling underwriting after claims are submitted could be seen as a departure from standard practices.
Therefore, the practice that appears to be inconsistent with permissible practices according to the NAIC Long-Term Care Model Act is d) Insurer D offers its customers fast automatic issuing of policies and handles underwriting later when claims are submitted.