Name: 
 

Chapter 3



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

 1. 

In most LTC policies, benefits will be payable when:
a.
the insured is discharged from the hospital and needs follow-up care
b.
a physcian determines the insured needs long term care
c.
family members can no longer care for the insured
d.
the insured is deemed “chronically ill”
 

 2. 

What is the minimum benefit period allowable under a NAIC Model Act policy?
a.
one year
b.
three years
c.
five years
d.
unlimited
 

 3. 

The 90-day certification period:
a.
requires the inability to perform ADLs for at least 90 daysto trigger benefits
b.
is the NAIC mandated waiting period on partnership policies
c.
is the maximum elimination period allowed on LTC group certificates
d.
none of the above
 

 4. 

Which benefit model will pay benefits regardless of the amount of long-term care expenses actually incurred by the insured?
a.
cash model
b.
indemnity model
c.
disability model
d.
all of the above
 

 5. 

What period is also known as the deductible period?
a.
accumulation period
b.
probationary period
c.
elimination period
d.
benefit period
 

 6. 

Which feature has the greatest impact on the premium the policyholder of a LTC will pay?
a.
inflation protection
b.
daily benefit amount
c.
elimination period
d.
survivor benefit
 

 7. 

The most commonly issued LTC policies cover:
a.
community-based health care services only
b.
services provided in nursing homes only
c.
home health care service only
d.
comprehensive services
 

 8. 

Who is able to determine when long-term care is needed?
a.
physician
b.
nurse
c.
medical social worker
d.
all of the above
 

 9. 

A free look provision on a long-term care policy must be at least
a.
30 day
b.
60 days
c.
10 days
d.
10 days but can vary from state to state
 

 10. 

Which inflation protecton provison will result in the lowest premium cost to the policyholder?
a.
5% simple rate
b.
5% guaranteed purchase option
c.
5% compound rate
d.
there is no difference in the premium cost of these options
 



 
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