LONG TERM CARE POLICIES NC EXAM REVIEW

Long-term care insurance policies must provide benefits for at least how many levels of care?

3

Which of the following provisions states that a company cannot cancel or nonrenew coverage because of a person's health or age, but that premiums can be increased?

Guaranteed Renewable- A long-term care policies must be guaranteed renewable

An optional long-term care insurance benefit that provides a reduced paid-up benefit amount is the...

Non-forfeiture benefit

A LTC policy may condition benefits on:

The ability to perform activities of daily living and on cognitive impairment as long as those conditions are defined in the policy.

Reasons to purchase a long-term care policy include:

To make sure the insured can choose the type of care they get.

An insured has a long-term care insurance policy that he purchased at the age of 55. When the insured reaches age 66, the company may: a: not increase his premium because of age. b: Cancel his policy because he is 66 and eligible for Medicare c: nonrenew the policy because he is over 65 d: increase his premium because he is older.

A: not increase his premium because of age

If a premium rate on the insured's long-term care policy was increased, the insured may exercise may exercise all of the following EXCEPT: a: Exercise a non-forfeiture option if purchased with the original policy b: Pay the increased premium but require the increase in coverage from the insurer c: Pay the increased premium and continue the policy in force as is. d: Reduce the policy benefits so that the premiums will not increase.

B: Pay the increased premium but require the increase in coverage from the insurer

For personal long-term care insurance for a 65-year old individual, premiums are deductible to the extent they exceed what minimum percentage of adjusted gross income?

7.5%; Premiums must total more than 10% of AGI or 7.5% if over 65 years old.

In long-term care (LTC) policies, as the benefit period lengthens, the premium...

Increase; LTC policies define the benefit period for how long coverage applies, after the elimination period. The longer the benefit period, the higher the premium will be.

What level of care is between custodial care and skilled nursing care?

Intermediate care; intermediate care is care needed for the patient who does not need skilled care but needs some nursing care.