Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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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 |
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2.
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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 |
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3.
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Post-claims underwriting is:
a. | a method to deny payment of claims | b. | only used when issuing group
policies |
c. | required under NAIC
Model legislation | d. | none of the above |
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4.
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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 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 |
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5.
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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 |
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6.
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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 |
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7.
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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. | guaranteed renewability | c. | free look
provision | d. | inflation protection |
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8.
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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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9.
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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 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 |
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10.
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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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