Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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An agent has an ethical duty to inform prospects of which of the
following?
a. | nature of long-term care | b. | cost of long-term care | c. | levels of long-term
care service | d. | all of the above |
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2.
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What documents should an agent retain as evidence of his or her ethical
conduct?
a. | completed fact-finding forms | b. | customer correspondence | c. | notes on
conversations with clients | d. | all of the
above |
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3.
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What must an agent do to ensure suitability of proposed LTC solutions?
a. | obtain relevant information from the client | b. | adhere to state
suitability requirements | c. | document the sales
presentation | d. | all of the above |
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4.
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Prospects with low incomes and few assets should:
a. | always buy LTC insurance | b. | generally buy LTC insurance | c. | generally not buy
LTC insurance | d. | never buy LTC insurance |
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5.
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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. | 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. | both a and b are
true | d. | neither a nor b are true |
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6.
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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 identity of the existing policy’s insurer | 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 policy language of the existing policy |
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7.
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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. | guaranteed renewability | b. | policy exclusions | c. | benefit
limits | d. | asset protection |
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8.
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Which of the following are factors to consider when contemplating a partnership
LTC policy?
a. | possible relocation of the insured in the future | b. | possible changes in
the Medicaid eligibility rules | c. | possible discontinuance of the state in the
partnership program | d. | all of the
above |
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9.
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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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10.
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The purchaser of a partnership LTC policy should be aware that:
a. | Medicaid does not provide the same level of LTC services as the partnership policy
may provide | b. | Medicaid benefits are not automatic | c. |
a partnership LTC policy may be more costly
than a non-partnership policy |
d. | all of the
above |
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