Which practice is NOT prohibited when marketing long-term care coverage?

The practice of replacing existing coverage with a new policy is not prohibited when marketing long-term care coverage, provided that certain criteria are met. Agents and insurers must ensure that the replacement is in the best interests of the policyholder and that they comply with all regulatory requirements regarding disclosures and potential risks associated with replacement policies. This means that if the new policy offers better coverage or benefits, and the policyholder is adequately informed about the implications of switching, such a practice can be permissible.

In contrast, misrepresenting policy benefits, employing high-pressure sales tactics, and failing to provide necessary disclosures are all practices that are explicitly prohibited. These practices can mislead consumers and undermine the integrity of the insurance market. Therefore, the replacement of existing coverage, when conducted ethically and transparently, stands apart from these prohibitive actions.