ASOP 18 - LTCI Flashcards
1
Q
LTCI pricing assumptions (8)
A
- Morbdidity
- Mortality
- Lapse
- Expenses
- Taxes
- Investment return
- Mix of business
- Change over time
2
Q
Considerations in setting LTC claim cost assumptions (9)
A
- Claim cost will vary by nursing home, assisted living facility, and home health care
- Substitution effect among various benefits
- Increased demand for LTC services due to presence of insurance
- Availability of benefits from other programs (Medicare)
- Availability of LTC services in geographic area
- Effect of UW selection and UW classes
- Financial benefits to the claimant of remaining elig for benefits
- Effect of mortality on termination rates
- Effect of marketing and claims processes
3
Q
Considerations in setting lapse assumptions (6)
A
- ) Method of marketing
- ) Policyholders expected to be covered
- ) Competitiveness
- ) Premium mode and payment method
- ) Nonforfeiture benefit
- ) Customer service of entity providing benefits
4
Q
Besides stand alone LTC plan, LTC benefits can also arise from (4)
A
- ) Acceleration of benefits under life insurance contracts
- ) Other insurance products with LTC benefits or riders
3) Managed care programs - ) Retirement communities