ST C 6

Question 1

1. Outline the five areas covered by a typical cognitive or memory test which is used for diagnosing memory problems or dementia?

Answer 1

The five areas covered by a typical cognitive or memory test is as follows:

• Orientation.
• Memory (part 1 ).
• Attention and calculation.
• Memory (part 2).
• Language, writing and drawing.

Question 2

2. Betty has senile dementia and is applying for protection pre-funded LTCI. Explain the likely outcome of underwriting.

Answer 2

Betty would be unlikely to be offered terms because this condition would fail the policy condition excluding mental incapacity where there is no organic degeneration.

Question 3

3. What are the four possible underwriting decisions with an LTC protection plan?

Answer 3

Likely outcomes are:
•	accept at standard terms;
•	accept with a premium loading;
•	decline or offer an immediate need/deferred need plans; and
•	exclusions are not normally used.

Question 4

List the six steps involved in processing a claim for pre-funded LTCI.

Answer 4

The claim sequence is:
• Claim form completed.
• Care counsellor/help line available.
• Test of disability completed.
• Checks for non-disclosure/exclusions/payments are up to date.
• Assistive device benefit paid/reg1ular premiums maintained.
• Claim paid after deferred period.