ST C 1

Question 1

1. State the FCA definition of long term insurance.

Answer 1

The FCA defines long term care insurance as a contract:

a. which provides, would provide at the policyholder’s option, or is sold or held out as providing, benefits that are payable or provided if the policyholder’s health deteriorates to the extent that he cannot live independently without assistance and that is not expected to change; and

under which the benefits are capable of being paid for periodically for all or part of the period that the policyholder cannot live without assistance;

where ‘benefits’ are services, accommodation or goods necessary or desirable for the continuing care of the policyholder because he cannot live independently without assistance.

Question 2

2. What are the two distinct categories of long term c:are insurance?

Answer 2

The two distinct categories of long term care insurance are:

• pre-funded policies; and
• immediate need care plans.

Question 3

3. Does the FCA see LTCI provision as high, medium or low risk products?

Answer 3

High

Question 4

4. Define what intermediate care and reablement is.

Answer 4

This is NHS care which is provided free to pa1tients in their own home which otherwise would be provided in hospital. It will normally be restricted to a maximum of six weeks.

Question 5

What does EMI stand for?

Answer 5

Elderly mentally infirm.