Question

How many long term care policies can be sold to an insured within a 12-month period before the number of policies is considered to be unnecessary?

1) 1
2) 2
3) 3
4) 4

Answer 1

In the insurance industry, typically only one long term care policy should be sold to an individual within a 12-month period to prevent unnecessary coverage. Selling more than one could be considered unethical unless there are special circumstances that justify additional policies.

Step-by-step explanation:

The subject of the question pertains to the sale of long term care policies, which is a topic within the insurance sector of the business industry. When it comes to the sale of long term care policies, most regions and insurance companies have regulations to prevent overselling or unnecessary issuance of policies. Typically, an individual would only need one long term care policy within any given period. This is because one comprehensive policy should cover the insured's needs without the added expense and complication of multiple policies.

Therefore, the ethical and practical limit for selling long term care policies to a single individual would be one policy within a 12-month period. Selling more than one policy to an insured within this timeframe could be considered unnecessary and could potentially border on unethical practice, unless there are very specific circumstances that would justify additional coverage.