California Warns Against Dishonest Marketing Tied to Long-Term Care Proposal

The maximum penalty for violating California’s ban on fear-based marketing tactics is $25,000 for agents and brokers and $500,000 for insurers.

Financial Professional Reactions

Ramona Neal, president of Living Benefit Review, a firm that analyzes post-acute care insurance products, said insurance sales representatives need a sense of urgency.

“After all,” she said, “insurance is sold, not bought. But, on the other hand, we have seen some cross the line from a sense of urgency to misleading.”

Steve Cain, a director at LTCI Partners, a long-term care insurance brokerage firm, said he has received many emails filled with factual inaccuracies about California’s LTC task force.

“I was glad to see the commissioner set the record straight,” Cain said.

Cain said the best approach is to talk about the need to plan for long-term care costs, not about avoiding the LTC payroll taxes that some states could eventually adopt.

The California State Capitol in Sacramento, California. (Photo: Sundry Photography/Adobe Stock)