Name: 
 

Suitability of Long Term Care Insurance



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

 1. 

An agent has an ethical duty to inform prospects of which of the following?
a.
nature of long-term care
b.
cost of long-term care
c.
levels of long-term care service
d.
all of the above
 

 2. 

What documents should an agent retain as evidence of his or her ethical conduct?
a.
completed fact-finding forms
b.
customer correspondence
c.
notes on conversations with clients
d.
all of the above
 

 3. 

What must an agent do to ensure suitability of proposed LTC solutions?
a.
obtain relevant information from the client
b.
adhere to state suitability requirements
c.
document the sales presentation
d.
all of the above
 

 4. 

Prospects with low incomes and few assets should:
a.
always buy LTC insurance
b.
generally buy LTC insurance
c.
generally not buy LTC insurance
d.
never buy LTC insurance
 

 5. 

A wealthy client reviews your sales presentation for a tax-qualified state partnership LTC policy and decides that the premium is rather high, and chooses to “self-insure” the risk instead.  Which of the following is (are) true?
a.
The client exposes himself to uncapped liability
b.
This is a good method to maximize the size of the estate he can leave to heirs
c.
both a and b are true
d.
neither a nor b are true
 

 6. 

Which of the following is typically NOT a factor to consider when recommending replacement of an existing LTC policy?
a.
the identity of the existing policy’s insurer
b.
whether the existing policy is tax-qualified or partnership-qualified
c.
the length of time the client has owned the existing policy
d.
the policy language of the existing policy
 

 7. 

When presenting a partnership qualified plan as a possible replacement for a recently issued tax-qualified LTC policy, which feature is most likely to be the focus of the presentation
a.
guaranteed renewability
b.
policy exclusions
c.
benefit limits
d.
asset protection
 

 8. 

Which of the following are factors to consider when contemplating a partnership LTC policy?
a.
possible relocation of the insured in the future
b.
possible changes in the Medicaid eligibility rules
c.
possible discontinuance of the state in the partnership program
d.
all of the above
 

 9. 

Which of the following could have a negative impact on an insurance plan that relies on a partnership LTC to meet the client’s LTC goals?
a.
the client has a high level of income
b.
the client purchases a partnership policy with a long benefit period
c.
the client has relatively few assets
d.
all of the above
 

 10. 

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
 



 
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