Long Term Care Exam

The free-look period for long-term care insurance policies issued in California is

30 days

Long-term care policies must offer an inflation protection feature that provides that benefit levels will increase annually at a rate of at least

5%

All other factors being equal, which of the following policy provisions would result in the highest premium for a long-term care insurance policy?

A 10-day elimination period and 10-year benefit periods

Which of the following provisions may be included in long-term care insurance policies issued in California?

A preexisting conditions provision

Roger has an individual long-term care insurance policy that provides a daily maximum benefit of $120 per day for each day he is confined to a nursing home. What type of policy is this?

Indemnity policy (An indemnity policy provides a maximum daily benefit for each day of confinement in a nursing home or other long-term care facility.)

Which of the following taxpayers may deduct the premiums for qualified long-term care insurance as a medical expense if they do NOT itemize deductions?

Self-employed taxpayers only

A condition that is long lasting and requires continuing care other than the type of care provided in emergency medical situations is

a chronic condition

A long-term care insurance policyholder must be eligible to purchase a shortened benefit period nonforfeiture benefit after paying premiums for at least

10 years

The maximum contestability period for long-term care insurance policies issued in California is

2 years

Under federal law, a chronically ill individual is someone who has been certified as being unable to perform at least ____ activities of daily living for at least ____ days.

2; 90

Which of the following exclusions would NOT be permitted in an LTC insurance policy in California?

Alzheimer's disease that begins after the effective date of coverage

Agent Smith solicits a sale of long-term care insurance from his client, Jones. When must Smith provide Jones with the outline of coverage?

Before the presentation of an application or enrollment form

All of the following are considered to be activities of daily living (ADLs) under long-term care insurance policies issued in California EXCEPT

Driving a car

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

Long-term care is provided to people with chronic diseases or disabilities who need care over an extended period.

Which of the following practices is permitted with respect to long-term care insurance in California?

Neither field issuance nor post-claims underwriting

Beth has a long-term care insurance policy. As long as Beth pays the premiums on time, the insurer cannot refuse to renew the policy, change the terms of the policy, or increase the premium for any reason. What king of policy is this?

Noncancelable

An insured has a newly issued LTC policy with an effective date of April 1, 2021. A preexisting condition disclosed on the application must be covered no later than

October 1, 2021 (Every LTC insurance policy must cover preexisting conditions disclosed on the application no later than six months after the effective date of coverage.)

Which of the following programs uses an interdisciplinary team to provide and coordinate all needed preventive, primary, acute, and long-term care services for an individual through a comprehensive medical/social service delivery system?

PACE

Which of the following nursing home facilities provide the highest level of medical care and tend to be the most expensive?

Skilled nursing facilities

An event or condition that must occur before benefits are paid is called a benefit:

Trigger

The type of care that is provided under a medical treatment plan and only by, or under the supervision of, a registered nurse is

a skilled nursing care

Qualified long-term care insurance policies are entitled to special tax advantages under

both federal law and California law

Care that does not involve medical services and that is limited to assistance with the essential needs of daily living such as walking, bathing, dressing, and eating is known as

custodial care

In California, a long-term care insurance policy may be called a comprehensive policy if it provides benefits for

facility care and home care

LTC insurance policies sold in California before January 1, 1997, were automatically granted tax-qualified status, but that status could be jeopardized if an insured

requests a material modification of the policy