3: All of the following long-term care coverages would allow an insured to receive care at home EXCEPT
A Respite care.
B Home health care.
C Skilled care.
D Custodial care in insured's house.
Custodial care, respite care, home health care, and adult day care are all coverages used to reduce the necessity of admission into a care facility. Skilled care is almost always provided in an institutional setting.
9: What do long-term care policies offer to policyholders to account for inflation?
A They do not account for inflation.
B They automatically increase premiums to account for inflation.
C They pay a dividend that increases every 7 years.
D They offer the option of purchasing coverage that raises benefit levels accordingly.
All long-term care insurance policies must also offer policyholders the option of purchasing coverage that raises benefit levels to account for reasonably anticipated increases in the costs of long-term care services covered by the policy.
15: Who is responsible for making sure that agents are properly trained in the use of the suitability standards for LTC policies?
A Commissioner
B Each individual agent
C Guaranty Association
D Insurer
A The premium will only be returned if the insured dies.
B The insurer will return all of the premiums paid.
C The insurer will return a percentage of the premiums paid.
D The insurer will not return any premiums in the case the policy is allowed to lapse.
The return of premium optional nonforfeiture type benefit is offered by most insurers writing long term care policies. In the event the insured dies or the policy is lapsed, the insurer will return a certain percentage of the premiums paid.
5: Which of the following statements is true regarding LTC insurance?
A LTC policies must allow a 60-day free-look period.
B Every policy must offer nonforfeiture benefits to the applicant.
C Every policy must offer reduced paid-up insurance to the applicant.
D LTC policies may not include any riders.
Long-term care policies or certificates issued or delivered in this state must offer to the applicant nonforfeiture benefits. Reduced paid-up insurance is one of the possible nonforfeiture options, but it is not necessarily required. LTC policies may contain riders, and must offer a 30-day free-look period.
6: What option allows the insured to periodically increase benefit levels without providing evidence of insurability?
A Guarantee renewable
B Annual increase
C Level premium
D Guarantee of insurability
Guarantee of insurability option allows the insured to periodically increase benefit levels without providing evidence of insurability. The amount is usually limited to allowing a 5% compounded annual increase.
10: An insured’s long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged $100 per day. How much will the insurance company pay?
A 80% of the total cost
B 20% of the total cost
C $120 a day
D $100 a day
Most LTC policies will pay the benefit amount in a specific fixed dollar amount per day, regardless of the actual cost of care.
14: A couple buying 7-year LTC policies decides to purchase shared care policies. The husband later gets sick and uses 3 years of LTC benefit before dying. How much LTC is left for the wife?
A 11 years
B 14 years
C 4 years
D 7 years
When LTC policies are written as shared care, that means that a couple gets to split the total benefits of the 2 policies. In this case, the couple had 14 years of LTC total under the shared care policy. The husband used 3 of the years, leaving the wife with 11 years of LTC to use.
A It provides Medicaid for people too young to qualify.
B It combines LTC insurance and Medicaid to help people prepare for nursing home care.
C It provides permanent in home nursing care for those who qualify, meeting age and health requirements.
D It provides public health care for children.
The New York State Partnership for Long-Term Care is program that combines private long-term care insurance and Medicaid to help New Yorkers prepare financially for the possibility of needing nursing home or home care. The program allows New Yorkers to protect their assets while remaining eligible for Medicaid if their long-term care needs exceed the period covered by their private insurance policy.
7: An insured’s long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged $100 per day. How much will the insurance company pay?
A 20% of the total cost
B $120 a day
C $100 a day
D 80% of the total cost
Most LTC policies will pay the benefit amount in a specific fixed dollar amount per day, regardless of the actual cost of care.