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Chapter 4



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

 1. 

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

 2. 

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

 3. 

Post-claims underwriting is:
a.
a method to deny payment of claims
b.
none of the above
c.
required under NAIC Model legislation
d.
only used when issuing group policies
 

 4. 

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 insured must be a resident of the state when he or she collects policy benefits
c.
the policy must be issued after the date the state partnership plan becomes effective  in the insured’s state of residence
d.
the policy must contain consumer protections based on the NAIC Model LTC Policy
 

 5. 

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

 6. 

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

 7. 

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

 8. 

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
 

 9. 

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 not permitted
b.
is not permitted, although a change from facilities-only to comprehensive plan would be
c.
is permitted, by the policy loses is partnership status
d.
is permitted, provided inflation protection is retained
 

 10. 

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



 
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