8 - Long Term Care

Question 1

Long-term Care Insurance (LTCI) policies in North Carolina must contain _____ levels of care providing benefits for at least 12 months.

Answer 1

-3 (Skilled, Intermediate, Custodial)

Question 2

The three levels of nursing care are:

Answer 2

• Skilled
• Intermediate
• Custodial

Question 3

All of the following are methods of payment from LTCI policies:

Answer 3

• Indemnity Basis
• Expense-Incurred Basis
• Disability Basis

Question 4

The insurance producer selling Partnership Qualified Long-term Care Insurance policies will be required to complete a _____ “refresher” course in each compliance period.

Answer 4

-4 hour

Question 5

Long-term Care Insurance (LTCI) policies are required to offer a particular option. If the company or producer fails to make this offer, it is an unfair trade practice. This option is:

Answer 5

-The inflation option requiring a 5% compounded increases annually

Question 6

Regulations require in a direct response sale for LTCI that the Shoppers Guide be provided no later than _________.

Answer 6

-at time of delivery

Question 7

Organic brain disease such as _______ is covered in the Long-term Care Insurance (LTCI) policy.

Answer 7

-Alzheimer’s

Question 8

According to North Carolina insurance regulations, when does the Long-term Care Insurance (LTCI) Financial or Suitability Worksheet have to be completed?

Answer 8

-When the application is taken

Question 9

If a field producer takes an application for a LTCI policy when must the Outline of Coverage be delivered to the applicant?

Answer 9

-at time of application

Question 10

No “attained age rating” will be allowed after what age in a Long-term Care Insurance (LTCI) policy in North Carolina?

Answer 10

-Age 65

Question 11

North Carolina insurance regulations require Long-term Care Insurance (LTCI) policies have a “free look period” of:

Answer 11

-30 days from the date of policy delivery to the applicant

Question 12

There is no open enrollment in LTCI policies; however, if the insurer issues the policy, the pre-existing conditions can only be waived for ______ from issue date.

Answer 12

-6 months

Question 13

Insurance producers selling or soliciting a Partnership Qualified (PQ) Long-term Care Insurance policy are required to complete a special _______ training course.

Answer 13

-8 hour

Question 14

The “six and six” rule in a Long-term Care Insurance (LTCI) policy means which of the following?

Answer 14

The insurer may look at preexisting conditions for a period of 6 months before application for the policy and waive those conditions for a period of 6 months after issue

Question 15

To be a tax qualified Long-term Care Insurance policy, the policy must “trigger” and pay benefits under which of the following?

Answer 15

-inability to perform 2 or more ADLs for a period of at least 90 days

Question 16

Long-term Care Insurance (LTCI) policies in North Carolina must offer as a rider or as a stated provision which of the following?

Answer 16

-Inflation Protection

Question 17

All individual Long-term Care Insurance (LTCI) policies are required to provide for reinstatement of coverage if the insurer is furnished proof of cognitive impairment or the loss of functional capacity of the insured. For how long is this option available after the lapse or termination of the policy?

Answer 17

-5 months

Question 18

The daily per diem amount allowed by the IRS for LTCI that is not subject to taxation is:

Answer 18

-$360