Unit 21

For long-term care policies to be considered qualified, a health professional must certify that a chronic illness will last for a minimum of: A) 3 months B) 6 months C) 9 months D) 12 months

A) 3 months

MAG Trading Co established a tax-qualified, long-term care insurance plan for its employees. Which of the following is NOT correct? A) Benefits received from the plan are subject to income tax B) MAG Trading's employees can exclude from their income any employer-paid premium contributions C) MAG Trading can take a deduction for the premium it pays D) Premiums paid by MAG Trading are considered a necessary business expense for tax purposes

A) Benefits received from the plan are subject to income tax

What is the definition of pre-existing condition in a long-term care policy? A) a condition for which advice or treatment was received within 6 months before the effective date of coverage B) any health condition that existed before coverage was in force C) a condition for which advice or treatment was rec'd within 3 months before the effective date of coverage D) a condition for which advice or treatment was rec'd within 1 year before the effective date of coverage

A) a condition for which advice or treatment was rec'd 6 months before the effective date of coverage

Which of the following statements about long-term care coverage is CORRECT? A) long-term care insurance provides a broad range of coverage for services rendered at home, at adult care centers, or in nursing homes B) Medicaid provides long-term care coverage for individuals, regardless of income levels C) Medicare and Medicaid are designed to cover a significant portion of the costs of long-term custodial or nursing home care D) Medicate supplement policies provide a significant amount of long-term care coverage

A) 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? A) Long-term care insurance requires a prior 30- day hospital stay in order to receive skilled care in a nursing home B) Care for physical safety and mental cognition is provided by long-term care insurance policies C) Long-term care insurance assists individuals in planning for future needs D) The amount and type of policy benefits are chosen by the individual

A) long-term care insurance requires a prior 3-day hospital stay in order to receive skilled care in a nursing home

Kathleen needs help with eating, bathing, and dressing. Which level of long-term care does Kathleen need? A) skilled nursing care B) custodial care C) home health care D) intermediate care

B) custodial care

All of the following are types of care defined in long-term care insurance policies EXCEPT: A) adult day care B) home day care C) respite care D) home health care

B) home day care

To be considered qualified, a long-term care insurance policy must conform to requirements concerning all of the following EXCEPT: A) marketing standards B) premium charges C) policy replacement D) policy conversion

B) premium charges

Which of the following statements regarding the required provision in a long-term care policy is NOT true? A) benefit amounts are expressed as dollars per day B) prior hospitalization is required for payment of benefits C) the elimination period is considered a time deductible D) policies must provide coverage for a minimum of 12 months

B) prior hospitalization is required for payment of benefits

Which of the following statements explains why a person would NOT be a good applicant for a long-term care insurance policy: A) He has substantial savings put aside to cover the cost of long-term care B) He already has a long-term disability policy C) Because his financial situation, he must rely on Medicaid to pay the cost of long-term care D) He has a Medicare supplement policy that will cover the cost of long-term care

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

Assisted living facilities provide: A) housing for families of terminally ill patients B) social networking at a facility other than the insured's home C) housing, meals, and help with personal care D) care for people who are no longer independent

C) housing, meals, and help with personal care

Which of the following is intermittent care performed by licenses nurses under a doctor's orders? A) home health care B) custodial care C) intermediate care D) skilled nursing care

C) intermediate care

All of the following about long-term care policy benefit period are correct EXCEPT: A) policies must provide coverage for at least 12 months B) most policies allow applicants to choose benefit periods from 2 to 5 years C) the longer the benefit period, the lower the premium D) the longer the benefit period, the higher the premium

C) the longer the benefit period, the lower the premium

For a long-term care insurance policy to begin paying benefits, the insured must: A) be diagnose as terminally ill B) receive skilled nursing care for at least 3 days C) be hospitalized for at least 3 days D) be diagnosed as chronically ill

D) be diagnosed a chronically ill

If a long-term care policy is considered tax qualified, A) it must conform to certain standards established by the individual state in which in which it is offered B) it can be offered as an employee benefit by an employer C) it must base premiums solely on the insured's age, health, and benefits D) its benefits will qualify for tax-exempt treatment

D) its benefits will qualify for tax-exempt treatment