Under California's Long-Term Care Insurance Reform Act, what inflation protection must an insurer offer (but not necessarily mandate) to applicants for an individual LTC policy?

Explanation

California Insurance Code §10232.9 requires LTC insurers to OFFER each applicant inflation protection, with at minimum a 5% compounded annual benefit increase option (the gold standard for keeping pace with nursing-home cost inflation over a 20-30 year horizon). The applicant may elect a lower form (simple 5%, lower percentages, or none) but must be offered the strongest version. A flat 2% simple annual increase is too weak to be a sole offering. The claim that the insurer need not offer any increase option at all is wrong — California is among the strictest LTC states; offering inflation protection is mandatory even though purchase is optional. And restricting the offer to applicants under age 50 is wrong — California does not limit by applicant age. The 5%-compound default reflects the historical rate of LTC cost growth and is required for Partnership LTC qualification.