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Long-term care can be described best as:
curative treatment.
chronic care for the rest of a person’s life.
care for the terminally ill. v
palliative care for the terminally ill.
History tells us the nursing homes evolved through:
private homes for the aged.
almshouses or country poor farms.
proprietary boarding homes.
private homes for the aged, almshouses, and proprietary boarding homes. v
Long-term care insurance, as we know it today, was first offered to U.S. consumers in:
1935.
1950
1974 v
1990.
If a proposed insured/applicant returns the long-term care policy to the insured within the free look period, the insurer must issue a full refund within _______ of receipt of the returned policy.
24 hours
48 hours
5 days
30 days v
The average length of time spent in a nursing home is:
1 to 2 years.
18 months to 2 years.
2½ to 3 years. v
3 to 5 years.
Short-term care that is designed to relieve the primary caregiver in the home is called:
Hospice services.
respite care. v
homemaker services.
personal care services.
Under the indemnity method of claims payment, benefits are paid:
in a fixed amount regardless of the expense incurred. v
based on the actual expenses incurred.
through the cash only method.
through the per diem method only.
When one long-term care insurance policy covers two individuals, benefits are taken from:
the premium amount already paid.
a pool of benefits.
the cash value of the policy.
only the individual who uses the services. v
If a person has been designated under the unintentional lapse protection, the insurer is obligated to notify the insured of their right to change the designee:
at regularly scheduled intervals.
upon policy renewal.
at least once a year. v
at least once every two years.
When an event occurs that causes a qualified long-term care insurance policy to lose its tax qualified status, the event is referred to as a
material change.
grandfathered act.
nonforfeiture benefit.
IRS tax consequence. v
Insurers are required to maintain a record of all policy rescissions and to furnish this information to the commissioner:
on a monthly basis.
on an annual basis. v
as requested by the commissioner.
when the amount of rescissions surpass 10% of overall sales.
Most experts recommend a ____________ benefit period.
1 to 2 year
1 to 3 year
2 to 3 year
2½ to 3 year v
Each time a rate is increased, a new ____________ must also be filed and approved by the commissioner.
Outline of Coverage
Personal Worksheet v
HICAP Notice
Important Notice Regarding Policies Available
(A new personal worksheet shall be filed and approved by the commissioner each time a rate is increased in California and each time a new policy is filed for approval by the commissioner.)
Long-term care policyholders have the right to retain a policy while lowering the premium in certain specified ways any time:
after the first year of in-force coverage. v
after 18 months of coverage.
no matter how long the policy has been in effect.
the policyholder’s income has been reduced by at least 20%.
When a premium payment accompanies an application for a long-term care insurance policy without interim coverage, the premium payment can be:
no more than two month’s premium payment.
no more than one month’s premium payment. v
a full year’s premium payment.
at least three month’s premium payment.
When a premium payment accompanies an application for a long-term care insurance policy with interim coverage, the premium payment can be:
no more than two month’s premium payment. v
A copy of any advertisement intended for use in the sale of long-term care insurance must be approved by the commissioner at least _______ before its use.
14 days
21 days
30 days v
18 months
If an insurer offers long-term insurance products on the Internet and an interested party requests a specimen form, the form must be provided:
with an immediate link on the site. v
within 7 days.
within 15 calendar days.
after personal contact by an agent.
Under the guidelines of unintentional lapse protection, notice cannot be given to a designee under ______ after a premium is due and unpaid.
7 days
14 days
21 days
30 days v
If an applicant declines to provide the information required on the Personal Worksheet, the insurer:
must refuse to issue the policy. v
will assign higher risk premiums.
may use some other method to verify the applicant’s intent.
may issue the policy with a longer elimination period.
The shortened benefit period nonforfeiture benefit must be offered to applicants:
at the time of policy issuance.
at the time of application. v
after the policy has been in force for at least one year.
if/when they apply for unemployment benefits.
Under the shortened benefit period nonforfeiture option, eligibility begins no later than:
After 10 years of premium payment v
In tax qualified policies, a chronically ill insured must have an impairment in two out of _____ ADLs; in nonqualified policies, two out of _____ ADLs are required.
six; seven v
seven; six
five; six
six; five
A rider that is specifically for the terminally ill that can provide the insured with 70-80% of their existing life insurance policy’s death benefit to cover nursing home care costs is the:
standard benefit rider.
nursing home care rider.
living benefit rider. v
waiver of premium rider.
The _______________ must specifically state that an LTCI policy must describe the waiver of premium provision or state that there are no waiver of premium provisions.
Outline of Coverage v
Personal Worksheet
Disclosure Form
Waiver of Premium clause
If a new Personal Worksheet has been filed and approved with the commissioner, the insurer must use the new worksheet within ______ of approval in place of the previously approved worksheet.
14 days.
30 days.
45 days.
60 days. v
Long-term care insurance policyholders have the right to increase coverage in several ways no less frequently than:
on each anniversary date after policy issuance. v
once every two years.
once every three years.
twice every five years.
When determining whether the applicant meets the insurer’s suitability standards, which of the following factors must be taken into consideration?
The applicant’s ability to pay for the proposed coverage.
The applicant’s goals or needs with respect to long-term care.
The advantages and disadvantages of insurance to meet the applicant’s goals or needs.
All of the above and more. v
Insurers are required to include a graphic comparison of the benefit levels of a policy that show benefit levels over ________ with the outline of coverage.
at least a 20-year period. v
at least a 10-year period.
at least a 5-year period.
the last year.
Insurers are required to retain approved advertising material for:
one year.
two years.
at least three years. v
five years.
The Long-Term Care Insurance Shoppers Guide is titled:
Taking Care of You and Your Loved Ones.
Taking Care of Tomorrow. v
LTC Comparisons.
What Will We Do For Our Future?
If an agent advertises on the Internet, which of the following information must be identified on the website?
The agent’s name as it appears on his/her insurance license
The agent’s state of domicile and principal place of business.
The agent’s license number.
All of the above, plus any approved fictitious name v
The Consumer Rate Guide is prepared:
weekly.
monthly.
annually by June 1st of each year. v
whenever there is a significant rate increase.
Post claim underwriting takes place:
prior to a claim.
after the policyholder files a claim. v
before the application is approved.
during the approval process.
Which of the following is NOT covered under the California Life & Health Insurance Guarantee Association?
Health insurance policies
Annuity contracts
Life insurance policies
Group insurance policies v
The elimination period is almost always expressed in:
hours.
days. v
weeks.
years.
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