Name: 
 

Chapter 5



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

 1. 

Which of the following is typically NOT a factor to consider when recommending replacement of an existing LTC policy?
a.
the policy language of the existing policy
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 identity of the existing policy’s insurer
 

 2. 

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

 3. 

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

 4. 

Which of the following is a standardized form that asks questions related to the suitability of a LTC product for a prospective applicant?
a.
Outline of Coverage
b.
Buyer’s Guide
c.
application
d.
personal worksheet
 

 5. 

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

 6. 

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.
neither a nor b are true
d.
both a and b are true
 

 7. 

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 purchases a partnership policy with a long benefit period
b.
the client has relatively few assets
c.
the client has a high level of income
d.
all of the above
 

 8. 

An “Agent’s Report” contains which of the following
a.
the completed application, signed disclosure documents, and the first premium check
b.
medical information collected by the agent
c.
material facts not disclosed in the application
d.
all of the above
 

 9. 

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

 10. 

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.
benefit limits
b.
policy exclusions
c.
asset protection
d.
guaranteed renewability
 



 
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