What do all long-term care insurers, agents, and brokers owe to the policyholder or prospective policyholder?

The obligation that long-term care insurers, agents, and brokers owe to policyholders or prospective policyholders is a duty of honesty, good faith, and fair dealing. This duty forms the cornerstone of fiduciary relationships in the insurance industry. It ensures that all parties involved conduct business ethically and transparently, fostering trust and accountability.

Honesty requires adherence to truthful representations in policy offerings, while good faith demands that all parties act in a manner that upholds the interests of the policyholder. Fair dealing involves treating policyholders fairly in all transactions, guaranteeing that they receive the benefits they expect from their policies without being misled or taken advantage of.

This foundational principle helps protect consumers from fraudulent practices and ensures that they receive accurate information when making vital decisions about their long-term care needs. While other duties, such as providing courteous service or competitive pricing, are essential components of customer service and satisfaction, they do not carry the same legal and ethical weight as the duty of honesty, good faith, and fair dealing.