Long-Term Care

For long-term care policies to be considered qualified, a health professional must certify that a chronic illness will last for a minimum of

3 months

What is the definition of pre-existing condition in a long-term care policy?

A condition for which advice or treatment was received within 6 months before the effective date of coverage.

Which of the following terms describes the ability to perform certain independent tasks?

Activities of daily living

A long-term care policy cannot limit or exclude coverage for which of the following conditions?

Alzheimer's disease

What protects an insured against unintentional lapse?

Another individual also receives the premium due notice

Which of the following statements explains why a person would NOT be a good applicant for a long-term care insurance policy?

Because of his financial situation, he must rely on Medicaid to pay the cost of long-term care.

One of the requirements of a qualified long-term care policy is the inability of an insured to perform some number of the activities of daily living by themselves. Which is considered a measurement of the most impaired person?

Eating

Which of the following provisions gives a long-term care policyowner the option to purchase additional insurance amounts within specified parameters regardless of insurability?

Guarantee of insurability

A qualified long-term care insurance policy must contain which of the following requirements?

Guaranteed renewability

Which of the following statements regarding the respite care provision under a long-term care policy is CORRECT?

It pays a benefit for a family caregiver to get away from her duties for a short period of time.

Which of the following types of care is described as a broad range of medical, personal, and environmental services designed to assist individuals who have lost their ability to remain completely independent in the community?

Long-term care

Which of the following statements regarding home health care is NOT correct?

Most long-term care policies do not provide coverage for home health care.

Which of the following statements regarding group long-term care insurance is NOT true?

Plans are tailored to meet individual needs.

Which of the following is NOT one of the requirements for a policy to be considered "Qualified"?

Policies may include optional coverage for reimbursement of certain Medicare expenses.

Skilled nursing care differs from intermediate care in which of the following ways?

Skilled care must be available 24 hours a day, while intermediate care is daily, but not 24-hour, care.

A long-term care policy will cover all of the following EXCEPT

emergency hospital care

The minimum benefit period for a long-term care insurance policy is

12 months

MAG Trading Co. established a tax-qualified, long-term care insurance plan for its employees. Which of the following statements is NOT correct?

Benefits received from the plan are subject to income tax.

Which of the following is a common benefit trigger for a long-term care policy?

Cognitive or mental impairment

Qualified long-term care policies must meet the specific requirements of

HIPAA

Which of the following sets the requirements that must be met for long-term care insurance policies to be considered "Qualified"?

HIPAA

In terms of long-term care, which of the following WOULD be covered by a Medicare supplement insurance plan?

Hospice care

Becky wants to make sure that she has insurance to protect herself if she eventually needs long-term custodial or nursing home care. Which type of policy will cover these types of care?

Long-term care insurance

Which of the following statements about long-term care coverage is CORRECT?

Long-term care insurance provides a broad range of coverage for services rendered at home, at adult care centers, or in nursing homes.

Which of the following statements regarding long-term care insurance is NOT true?

Long-term care insurance requires a prior 3-day hospital stay in order to receive skilled care in a nursing home.

State long-term care insurance partnership programs are a joint effort of all of the following EXCEPT

Medicare

Which of the following is an optional benefit to a long-term care insurance policy?

Nonforfeiture benefit

Which of the following may be used as a reason to cancel a long-term care policy?

Nonpayment of premiums

Which of the following statements regarding the required provisions in a long-term care policy is NOT true?

Prior hospitalization is required for payment of benefits.

Which of the following statements regarding the elimination period in a long-term care policy is NOT true?

The longer the elimination period, the higher the premium.

All of the following are required long-term care insurance standards EXCEPT

a 10-day free-look period

Long-term care policies can limit or exclude coverage for all of the following EXCEPT

a family history of a heart condition

Regarding long-term care insurance, the existence of symptoms that would cause an ordinarily prudent person to seek diagnosis or treatment, or a condition for which medical advice or treatment was recommended by or received from a provider of health care services within 6 months before the effective date of an insured's coverage, is known as

a pre-existing condition

All of the following conditions are typically covered in a long-term insurance policy EXCEPT

alcohol dependency

A deductible that is measured in time rather than dollars is called

an elimination period

Skilled nursing long-term care is provided

around the clock

For a long-term care insurance policy to begin paying benefits, the insured must

be diagnosed as chronically ill

An optional benefit that allows an insured to buy additional coverage at certain times using their attained age is

guaranteed insurability

All of the following are types of care defined in long-term care insurance policies EXCEPT

home day care

All of the following are levels of long-term care EXCEPT

hospital care

Assisted living facilities provide

housing, meals, and help with personal care

An insurance policy benefit that increases benefits to keep up with anticipated cost increases for long-term care services is said to have

inflation protection

Javier purchased a long-term care insurance policy with an optional benefit that provides a yearly increase in benefits. His policy offers

inflation protection

Care that is provided on an intermittent basis by licensed nurses is known as

intermediate care

If a long-term care policy is considered tax qualified,

its benefits will qualify for tax-exempt treatment

A long-term care policy can be terminated because of the insured's

nonpayment of premiums

To be considered qualified, a long-term care insurance policy must conform to requirements concerning all of the following EXCEPT

premium charges

All of the following are activities of daily living EXCEPT

reading

Which of the following is NOT one of the six activities of daily living?

shopping

When marketing long-term care insurance, the insurer or agent must consider

the suitability of the purchase