Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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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 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 |
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2.
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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 |
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3.
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The purchaser of a partnership LTC policy should be aware that:
a. |
a partnership LTC policy may be more costly than 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 |
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4.
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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. | Outline of Coverage | b. | Buyer’s Guide | c. | application | d. | personal
worksheet |
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5.
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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 eligibility
requirements |
c. | automatically qualify for Medicaid benefits once their policy’s benefits are
exhausted | d. | none of the above |
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6.
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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. | neither a nor b are
true | d. | both a and b are true |
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7.
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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 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 |
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8.
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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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9.
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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 |
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10.
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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. | benefit limits | b. | policy exclusions | c. | asset
protection | d. | guaranteed renewability |
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