Please be sure to enter your name, FL insurance agent (or CFP) ID# and email
address in the above boxes.
Use the drop boxes to the left of each question to select your
answers.
When you have answered all of the questions, click the “Grade and Submit”
button at the bottom of the page. Your score will be displayed and your completed exam will be
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When you finish, use
the “Back” button on your browser to return to the study text.
Indicate whether the following statement is true or
false.
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1.
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AGENT CERTIFICATION
I certify that I am the agent enrolled in this
course, and that I will complete this final examination by myself without any assistance from anyone
else. I understand that failure to comply with this requirement may result in the loss of
continuing education credits and possible administrative sanctions by the Florida Department of
Financial Services.
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Multiple Choice
Identify
the choice that best completes the statement or answers the question.
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1.
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Which feature has the greatest impact on the premium the policyholder of a LTC
will pay?
a. | survivor benefit | b. | daily benefit amount | c. | inflation
protection | d. | elimination period |
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2.
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John is contemplating entering a nursing home. John contacts his insurance
agent and purchases an immediate fixed annuity. Under which circumstances would this purchase
of an annuity NOT be considered an asset transfer under Medicaid’s look-back rules?
a. | John names his wife as beneficiary of the annuity | b. | John names the state
as a contingent beneficiary | c. | The annuity payments are based on John’s
life expectancy | d. | all of the above would exempt the annuity from the asset transfer
rules |
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3.
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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. | disability model | b. | cash model | c. | indemnity
model | d. | all of the above |
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4.
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Medicaid’s estate recovery system applies to assets of all deceased
Medicaid beneficiaries who received
a. | nursing home services | b. | home health care services | c. | community based
care | d. | all of the above |
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5.
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Agents soliciting LTC policies must complete:
a. | 8 hours of LTC training, including 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 initial LTC training and 8 hours of
LTC Partnership training every compliance period | d. | 4 hours of initial LTC training and 4 hours of
LTC Partnership training every compliance period |
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6.
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Which of the following sources of cash requires repayment:
a. | reverse mortgage | b. | home equity loan | c. | life insurance
policy loan | d. | all of the above |
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7.
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In order to enjoy the benefits of a partnership qualified LTC policy, all of the
following are required EXCEPT:
a. | the insured must be a resident of the state when he or she collects policy
benefits | b. | the policy must contain consumer protections based on the NAIC Model LTC
Policy | c. | the policy must be tax-qualified under HIPAA | d. | the policy must be
issued after the date the state partnership plan becomes effective in the insured’s state
of residence |
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8.
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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. | asset protection | b. | guaranteed renewability | c. | benefit
limits | d. | policy exclusions |
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9.
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Under the DRA, Medicaid imposes a look back period on asset transfers of
a. | 24 months | b. | 36 months | c. | 48
months | d. | 60 months |
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10.
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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 |
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11.
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All of the following are ways to obtain cash from the insurer of a life
insurance policy EXCEPT:
a. | accelerated benefits provisions | b. | viatical settlements | c. | cash
surrender | d. | policy loans |
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12.
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All of the following are reasons for expanding the LTC Partnership Program
EXCEPT:
a. | educating consumers about the need, risk and cost of LTC | b. | provide tax
deductions for purchasers of qualified LTC policies | c. | encourage the private LTC insurance
industry | d. | curb insurance spending by Medicaid on LTC expense |
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13.
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Post-claims underwriting is:
a. | only used when issuing group policies | b. | a method to deny payment of
claims | c. | required under NAIC Model legislation | d. | none of the
above |
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14.
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Which of the following is NOT an ADL?
a. |
continence |
b. | taking medication | c. | transference | d. | bathing |
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15.
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Medicare Part A covers nursing home care only if
a. | skilled care is provided | b. | the care is certified as medically
necessary by a physician | c. | the patient has been hospitalized for at least
3 days in the previous month | d. | all of the above are required for Medicare to
cover nursing home care |
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16.
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Which of the following are true regarding Medicare Supplement (Medigap)
policies?
a. | Medigap pays for types of care Medicare won’t cover, e.g., personal
care | b. | Medigap pays for care in more expensive facilities or those not Medicare
certified | c. | Medigap pays co-pays and deductibles Medicare imposes | d. | Medigap pays for
nursing home care beyond the 100 covered by Medicare |
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17.
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Assisted living facilities provide all of the following EXCEPT:
a. | on-staff physical therapist | b. | help with medication | c. | meal
preparation | d. | personal care |
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18.
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A life settlement is closely related to:
a. | policy loans | b. | viatical settlements | c. | policy
surrender | d. | accelerated benefits |
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19.
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Which of the following is an example of community based care?
a. | assisted living residences | b. | respite care | c. | adult day
care | d. | home health care |
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20.
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What period is also known as the deductible period?
a. | accumulation period | b. | benefit period | c. | probationary
period | d. | elimination period |
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21.
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Which of the following is typically NOT a factor to consider when recommending
replacement of an existing LTC policy?
a. | the length of time the client has owned the existing policy | b. | the policy language
of the existing policy | c. | whether the existing policy is tax-qualified or
partnership-qualified | d. | the identity of the existing policy’s
insurer |
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22.
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Martina bought a partnership policy at age 65. Her policy must
provide:
a. | simple inflation protection | b. | compound inflation
protection | c. | some level of inflation protection | d. | no inflation protection is required, but the
policy can be sold |
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23.
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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. | This is a good method to maximize the size of the estate he can leave to
heirs | b. | The client exposes himself to uncapped liability | c. | both a and b are
true | d. | neither a nor b are true |
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24.
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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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25.
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Which inflation protection provision will result in the lowest premium cost to the
policyholder?
a. | 5% compound rate | b. | 5% guaranteed purchase
option | c. | 5% simple rate | d. | there is no difference in the premium cost of
these options |
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26.
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Which of the following is a non-countable asset in Medicaid’s eligibility
requirements?
a. | life insurance | b. | family burial plot | c. | collectibles | d. | qualified retirement plans
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27.
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The purchaser of a partnership LTC policy should be aware that:
a. | Medicaid benefits are not automatic | b. | Medicaid does not provide the same level of LTC
services as the partnership policy may provide | c. |
a partnership LTC policy may be more costly
than a non-partnership policy |
d. | all of the
above |
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28.
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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 permitted, by the policy loses is partnership status | b. | is not permitted,
although a change from facilities-only to comprehensive plan would be | c. | is permitted,
provided inflation protection is retained | d. | is not
permitted |
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29.
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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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30.
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Federal guidelines require state Medicaid programs to provide which of the
following to eligible applicants?
a. | nursing home care service | b. | home health care services | c. | community based care
services | d. | all of the above |
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31.
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The cost of assisted living facilities is generally:
a. | the same as that at nursing home | b. | more than that of a nursing
home | c. | less than that of a nursing home | d. | the same as that of a hospital
stay |
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32.
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An insured needs assistance with bathing and dressing, as well as help with
light housework and laundry, but is not in need of round-the-clock assistance. What level of
care does this insured need?
a. | acute | b. | supervisory | c. | personal | d. | custodial |
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33.
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Which of the following is a standardized form that asks questions related to the
suitability of a LTC product for a prospective applicant?
a. | personal worksheet | b. | application | c. | Outline of
Coverage | d. | Buyer’s Guide |
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34.
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Which two ADLS are the most likely to be lost first?
a. | bathing and dressing | b. |
transference and eating |
c. | toileting and
eating | d. |
toileting and continence |
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35.
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A terminally ill insured needing assistance bathing, dressing and eating would
most likely rely on:
a. | respite care | b. | home health care | c. | custodial
care | d. | hospice care |
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36.
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Continuing Care Retirement Communities (CCRCs):
a. | offer a wide range of home-care services at one fixed rate | b. | are another name for
assisted living facilities | c. | tie fees to the level of services
provided | d. | provide personal and skilled in-home care |
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37.
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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. | free look provision | c. | guaranteed
renewability | d. | inflation protection |
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38.
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Joann has been caring for her aged parents and has become exhausted. Her
physician recommends that she take a break from caregiving. What type of care is most
appropriate?
a. | respite care | b. | custodial care | c. | personal
care | d. | assisted living facilities |
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39.
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What documents should an agent retain as evidence of his or her ethical
conduct?
a. | customer correspondence | b. | completed fact-finding
forms | c. | notes on conversations with clients | d. | all of the
above |
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40.
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What is required of a state that wishes to implement an LTC Partnership
program?
a. | amendment of state insurance 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 Medicaid laws to exempt certain
assets equal to LTC benefits from Medicaid eligibility requirements | d. | all of the
above |
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41.
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Purchasers of partnership qualified LTCI:
a. |
may protect their assets and income from Medicaid eligibility
requirements |
b. | locks in current Medicaid eligibility requires relating to assets, but not
income | c. | automatically qualify for Medicaid benefits once their policy’s benefits are
exhausted | d. | none of the above |
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42.
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Which of the following applicants must include “automatic inflation
protection” as part of his or her LTC Partnership policy?
a. | Chris, age 56 | b. | Lou, age 74 | c. | Pat, age
67 | d. | all partnership LTC plans must include automatic inflation
protection |
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43.
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A free look provision on a long-term care policy must be at least
a. | 60 days | b. | 10 days | c. | 30
day | d. | 10 days but can vary from state to state |
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44.
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The most commonly issued LTC policies cover:
a. | home health care service only | b. | comprehensive services | c. | community-based
health care services only | d. | services provided in nursing homes
only |
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45.
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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 |
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46.
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Asset transfers for less than fair market value (gifts, bargain sales, etc.)
will be subject to which of the following under Medicaid’s look back rules?
a. | disallowance of the transfer | b. | 10% penalty on the difference between fair
market value and transfer value | c. | penalty period | d. | all of the
above |
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47.
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In most LTC policies, benefits will be payable when:
a. | family members can no longer care for the insured | b. |
a physician
determines the insured needs long term care |
c. | the insured is deemed “chronically
ill” | d. | the insured is discharged from the hospital and needs follow-up
care |
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48.
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The 90-day certification period:
a. | is the NAIC mandated waiting period on partnership policies | b. | is the maximum
elimination period allowed on LTC group certificates | c. | requires the inability to perform ADLs for at
least 90 daysto trigger benefits | d. | none of the
above |
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49.
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Which of the following are factors to consider when contemplating a partnership
LTC policy?
a. | possible changes in the Medicaid eligibility rules | b. | possible
discontinuance of the state in the partnership program | c. | possible relocation of the insured in the
future | d. | all of the above |
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50.
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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 |
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