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Long Term Care Coverage
(Know the answers to these questions to pass!)


1. The questions regarding the taxation of Long-Term Care Insurance (LTCI) is clearer now because






2. One advantage of an indemnity plan is






3. If an LTCI policy has a Care Coordinator provision, in many of these policies






4. Underwriters often want more medical information on an applicant than the applicant can provide,






5. Factors that affect actual nursing home costs are the exact nature of the care and services provided and






6. An LTCI policy is legally






7. If an applicant has Dementia,






8. One thing that many of the older generation have learned in respect to living longer, is






9. If a person is a Medicare beneficiary, Medicare pays




D. the full cost of medically necessary home health visits by an approved agency.

10. To qualify for Medicare coverage for home health care,






11. The occurrence that must happen before benefits can be paid is (are)






12. HIPAA eliminates a reason for benefits to be paid that was a provision of most non-tax-qualified LTCI policies previously, which was






13. An insurance company cannot change premiums on an LTCI policy






14. According to a recent survey,






15. The typical LTCI policy has six Activities of Daily Living defined, which excludes






16. Under a tax-qualified plan, the premium payment for an individual may be deducted if the unreimbursed medical expenses exceed their adjusted gross income by more than






17. Insurance companies that offer more stringent underwriting standards






18. Recent surveys indicate that buyers of LTCI policies under age 65 constitute






19. One of the disadvantages of the Partnership Program is






20. The nationwide cost of nursing home care alone last year was






21. One of the biggest problems with group LTCI is






22. When an examiner shows an applicant a word written on a card and then later asks the applicant to recall the word, this is called






23. The purpose of the examiners test as described in (22) above, is






24. When making a group proposal for LTCI, it can be stressed that






25. The LTCI policy will state the precise length of time that the insurer looks back into the insured’s past medical history






26. The lack of awareness and perception, as well as the ability to understand and reason that will allow an individual to function independently, is the definition of






27. Most people who require long-term care






28. The length of time that an insurance company will pay an insured person for long-term care as specified in the policy, is the






29. The feature that sets group LTCI coverage apart from other types of group insurance is






30. A Limited Liability Corporation (LLC) and a Schedule “S” Corporation for taxation of LTCI benefits and premiums, are treated






31. One plan that has aroused interest in providing funds for long-term care is a RAM, which






32. When an insurer needs an increase in premiums of an LTCI policy, the Insurance Department may allow them an increase if






33. With a Partnership Program LTCI policy, the purchaser must purchase an LTCI policy with stated benefits, which allows them to disregard certain asset requirements to qualify for Medicaid in that state. This elimination of these requirements are known as






34. An LTCI policy issued in a very few states are part of a program to provide a mechanism for individuals to qualify for coverage of the costs of their long term care needs under Medicaid without first being required to substantially exhaust all their resources. This is the






35. While CMS says that up to 45% of everyone who turned 65 in 1993 will stay in a nursing home at least once in their lifetime,






36. Basically, there are two types of LTCI policies:






37. Many LTCI actuaries believe that when designing an LTCI product, top priority should be






38. An agent represents three LTCI carriers, and before he takes an application






39. An “integrated” elimination period in an LTCI policy






40. An agent has 5 clients who belong to the same association, and who have mentioned that they would like some association-group LTCI and none of them presently have LTCI. The association has an agent-of-record, so






41. Companies have relaxed their prohibition against having more than one person in the room when the applicant is being interviewed






42. Some LTCI policies pay for the rental or purchase of certain equipment relating to the disability of the insured






43. An individual who has to take care of his own family and also invalid parents, are






44. Heirs who anticipate inheriting sizeable estates will be quite offended if they learn that the estate has been diminished by nursing home and/or other long-term care expenses, and that the “professional” who assisted in the estate or financial planning,






45. If an applicant for LTCI has had a telephone interview with the insurer which is not really totally satisfactory, in essence they may have “fumbled” something,






46. Near the Gulf of Mexico, there is a multi-story tower that offers household care, such as shopping and cleaning, to one group of residents; to another group they offer custodial care; to another group they have a full-scale nursing home with a doctor on attendance at all times along with a trained medical staff. The residents own their own condominium and if they need to be moved to one with more care available, they sell their old condo and buy a new one. This is a very expensive place to live. This is 






47. In some states it is legal for a person entering a nursing home to sell their assets and put the money into an annuity as in these states annuity payments are exempt from the “spend-down” rules to qualify for Medicaid. Therefore an agent should






48. The “six and six” model that refers to pre-existing conditions, means






49. If an employee terminates with an employer who provided true group LTCI, the employee






50. When long-term care benefit riders are attached to a life insurance policy, the benefit is determined by







Long Term Care Coverage