Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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In most LTC policies, benefits will be payable when:
a. | the insured is discharged from the hospital and needs follow-up
care | b. |
a physician determines the insured needs long term care |
c. | family members can
no longer care for the insured | d. | the insured is deemed “chronically
ill” |
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2.
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What is the minimum benefit period allowable under a NAIC Model Act
policy?
a. | one year | b. | three years | c. | five
years | d. | unlimited |
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3.
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The 90-day certification period:
a. |
requires the inability to perform ADLs for at least 90 days to 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 |
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4.
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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 |
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5.
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What period is also known as the deductible period?
a. | accumulation period | b. | probationary period | c. | elimination
period | d. | benefit period |
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6.
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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 |
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7.
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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 |
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8.
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Who is able to determine when long-term care is needed?
a. | physician | b. | nurse | c. | medical social
worker | d. | all of the above |
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9.
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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 |
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10.
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Which inflation protection provision 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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