CLTC Board of Standards, Inc. 2008 Update Bill Comfort, CLTC Board Chairman

Agenda Board of Standards purpose Protecting the designation Regulators and compliance Ethics training requirement Ethical LTC planning

Board of Standards Not-for-profit corporation Owns the designation Supervises training & education programs Responsible for testing Grants designation Enforces Code of Professional Responsibility Protects credibility of the designation in the marketplace

Protecting the Designation Code of Professional Responsibility Complaint process Disciplinary process Working with regulators Working with compliance departments On-going development with CLTCC to improve training & designee support Media availability

Regulators & Compliance Efforts to police and limit the use of professional designations Particular concern for “senior” designations Securities regulators out in front Insurance commissioners watching closely Ethical behavior even more critical

Regulators & Compliance Massachusetts securities division CLTC testimony during rule making process CLTC not affected by new MA rules, not a “senior” designation Example for new NASAA model regulation Kohl Bill Nebraska securities division Explicit approval of CLTC designation Iowa department of insurance

Regulators & Compliance Compliance departments make their own decisions Guided by regulators Working with FINRA (formerly NASD) Designees must follow all regulatory and company compliance guidelines in the use of the designation Violating regulatory or company compliance rules can result in CLTC disciplinary action

Ethics Training Key component in regulatory scrutiny & approvals Market trend New requirement to maintain CLTC designation Once every two years Effective April 1, 2008 Designees have until their 2nd renewal after 4/1/08 to complete the training

Ethics Training On-line Course paid by Board of Standards State insurance/ethics CE credit for a fee – student’s option (3 hours) CLTC ethics course will count for state-mandated CE No credit for other, outside courses

Ethical Problems Seminar advertising “Little known government secret” “What the government doesn’t want you to know” “Protect yourself from Medicaid asset seizure” “Surrender your money to Medicaid” FEAR, statistics, misrepresentation Subject to discipline by Board of Standards Free-meal seminars now suspect

Ethical Problems Advising outside of licensure Use of designation Insurance-only agents can not give ANY advice regarding investments. Can’t advise a client to sell investments to buy a non-registered insurance product. Use of designation CLTC – “Certified in Long-Term Care” No other descriptions or modifiers allowed May not use the words “specialist” or “expert” in direct connection with the designation

Best Practices CLTC is a planning designation Designees are required to understand all applicable personal & financial interests of the client when making a recommendation Use the CLTC 3-Step Planning Process Make suitable benefit recommendations Co-paying to reduce benefit amounts Shorter benefit periods for affordability Plan features appropriate for client’s needs

Best Practices LTC planning is a core discipline for all financial, investment, retirement & estate plans Document all conversations, recommendations and decisions “Opt-out” letters suspect Continue your education Partnership LTC PPA & linked-benefit products

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