Name: 
 

Long Term Care Partnership Programs



Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 1. 

All state partnership LTC policies must be
a.
federally tax qualified
b.
non-tax qualified
c.
tax-qualified at the option of the state
d.
tax-qualified at the option fo the insured
 

 2. 

Agents soliciting LTC policies must complete:
a.
8 hours of initial LTC training and 8 hours of LTC Partnership training every compliance period
b.
4 hours of initial LTC training and 4 hours of LTC Partnership training every compliance period
c.
8 hours of initial LTC training, including LTC Partnership training, and 4 hours of LTC training every compliance period thereafter
d.
8 hours of  LTC training, including LTC Partnership training, every compliance period
 

 3. 

What is required of a state that wishes to implement an LTC Partnership program?
a.
amendment of state insurance laws to exempt certain assets equal to LTC benefits from Medicaid eligibility requirements
b.
amendment of Medicaid laws to exempt certain assets equal to LTC benefits from Medicaid eligibility requirements
c.
amend state laws to permit the sale of tax qualified LTC policies within that state
d.
all of the above
 

 4. 

Which federal law permits the establishment of LTC Parternship plans nationwide?
a.
OBRA
b.
COBRA
c.
HIPAA
d.
DRA
 

 5. 

Which federal law clarified the tax-status of private LTC policies?
a.
OBRA
b.
COBRA
c.
HIPAA
d.
DRA
 

 6. 

All of the following are reasons for expanding the LTC Partnership Program EXCEPT:
a.
educating consumers about the need, risk and cost of LTC
b.
curb insurance spending by Medicaid on LTC expense
c.
provide tax deductions for purchasers of qualified LTC policies
d.
encourage the private LTC insurance industry
 

 7. 

Which of the following is true regarding reciprocity of benefits under the LTC Partnership plans?
a.
nationwide reciprocity is a goal, but is not currently available
b.
the four original states currently enjoy reciprocity, but not with other states
c.
only those states that have implemented partnership plans enjoy reciprocity
d.
none of the states currently has any reciprocal benefits
 

 8. 

A partnership LTC policy will “shield” the insured from:
a.
Medicaid’s asset requirements
b.
Medicaid’s income requirement
c.
Medicaid’s estate recovery rules
d.
a and c
 

 9. 

Which of the following applicants must include “automatic inflation protection” as part of his or her LTC Partnership policy?
a.
Chris, age 56
b.
Pat, age 67
c.
Lou, age 74
d.
all partnership LTC plans must include automatic inflation protection
 

 10. 

Which of the following provisions is the main difference between partnership qualified (PQ) LTC policies and non-PQ policies?
a.
inflation protection
b.
guaranteed renewability
c.
free look provision
d.
tax free benefit payments
 

 11. 

Abby Normal purchased a long-term care policy twenty years ago when she was 56.  Today, she wishes to have the asset protection affored by her state’s LTC partnerhip program. Which of the following courses of action will NOT provide Abby with that protection?
a.
surrender the old policy for a new PQ policy
b.
request an endorsement on the old policy for inflation protection and new issue date
c.
continue to hold the old policy, as long as it has inflation protection, it is automatically partnership qualified
d.
either a or b
 

 12. 

In order to enjoy the benefits of a partnership qualified LTC policy, all of the following are required EXCEPT:
a.
the policy must be tax-qualified under HIPAA
b.
the policy must contain consumer protections based on the NAIC Model LTC Policy
c.
the insured must be a resident of the state when he or she collects policy benefits
d.
the policy must be issued after the date the state partnership plan becomes effective  in the insured’s state of residence
 

 13. 

Under the Deficit Reduction Act of 2005 (DRA), a state that implements a LTC partnership plan may:
a.
not impose any requirements on partnership qualified plans addition to those required by the DRA
b.
impose requirements on partnership qualified plans addition to those required by the DRA, if the state also imposes the same requirements on non-partnership policies
c.
impose requirements on partnership qualified plans addition to those required by the DRA, but does not have to impose the same requirements on non-partnership policies
d.
none of the above are true
 

 14. 

Martina bought a partnership policy at age 65.  Her policy must provide:
a.
compound inflation protection
b.
some level of inflation protection
c.
simple inflation protection
d.
no inflation protection is required, but the policy can be sold
 

 15. 

Purchasers of partnership qualified LTCI:
a.
automatically qualify for Medicaid benefits once their policy’s benefits are exhausted
b.
may protect their assets and income from Medicaid eligibilty requirements
c.
locks in current Medicaid eligibility requires relating to assets, but not income
d.
none of the above
 

 16. 

The purchaser of a partnership LTC policy should be aware that:
a.
Medicaid does not provide the same level of LTC services as the partnership policy may provide
b.
Medicaid benefits are not automatic
c.
a partnership LTC policy may be more costly thatn a non-partnership policy
d.
all of the above
 

 17. 

Jake has a $100,000 partnership LTC policy.   He has been in a nursing home for two years and the policy has paid $90,000 in benefits.  He applies for Medicaid benefits in anticipation of exhausting his policy’s benefits in a couple of months.  What level of asset protection will Jake enjoy?
a.
$90,000
b.
$100,000
c.
depends on when Medicaid processes his application
d.
Jake cannot apply for Medicaid benefits before his policy is exhausted
 

 18. 

Juanita has a partnership qualified LTC policy and wishes to change the level of coverage from comprehensive coverage to a facilities-only plan as a way to reduce premium costs.  Under the Deficit Reduction Act, such a change:
a.
is permitted, by the policy loses is partnership status
b.
is permitted, provided inflation protection is retained
c.
is not permitted, although a change from facilities-only to comprehensive plan would be
d.
is not permitted
 

 19. 

The original four demonstation partnership programs in New York, California, Indiana, and Connecticut operate on one of two models: dollar-for-dollar or total asset protection.  New states implementing partnership programs may use:
a.
either dollar-for-dollar or total asset protection
b.
total asset protection only
c.
dollar-for-dollar only
d.
reimbursement plans only
 

 20. 

States wishing to implement a LTC Partnership plan, must submit which of the following to the Centers for Medicare and Medicaid Services (CMS)
a.
state plan amendment (SPA)
b.
qualified state long-term care insurance partnership (QSLTCIP)
c.
NAIC Model legislation
d.
all of the above
 



 
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