© 2004 by Dearborn Financial Publishing, Inc.®
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Appendix III. Life Agent Disclosure Requirements for Sales to Elders
Assembly Bill 2107
Effective July 1, 2001, Chapter 442, Statutes of 2000 (Assembly Bill 2107, Scott), strengthens the Elder
Abuse and Dependent Civil Protection Act with respect to selling insurance and financial products to elders
and clarifies the definition of financ ial abuse. (The definition of "elders" is any person residing in this state that
is 65 years of age or older.)
At the time of the enactment of this law, a life agent is required to make specified disclosures about the potential
consequences of entering into financial transactions related to an elder's potential eligibility for Medi-Cal
coverage and prohibits a life agent from negligently misrepresenting a product based on its treatment under
Medi-Cal.
Required Medi-Cal Disclosure
A life agent who offers for sale or sells any financial product on the basis of its treatment under the Medi-Cal
program shall provide, in writing, the following disclosure to the elder or the elder's agent:
NOTICE REGARDING STANDARDS FOR MEDI-CAL
ELIGIBILITY
If you or your spouse are considering purchasing a financial product
based on its treatment under the Medi-Cal program, read this important
message!
You or your spouse do not have to use up all of your savings before
applying for Medi-Cal.
UNMARRIED RESIDENT
An unmarried resident may be eligible for Medi-Cal benefits if he or
she has less than $2,000 in countable resources.
The Medi-Cal recipient is allowed to keep from his or her monthly
income a personal allowance of $35 plus the amount of any health
insurance premiums paid. The remainder of the monthly income is paid to
the nursing facility as a monthly share of cost.
MARRIED RESIDENT
© 2004 by Dearborn Financial Publishing, Inc.®
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