NORTH CAROLINA MEDICARE
SUPPLEMENT & LONG TERM CARE
INSURANCE LICENSING EXAM
QUESTIONS AND 100% VERIFIED
ANSWERS WITH RATIONALES
GRADED A+
GUARANTEED PASS ON THE FIRST ATTEMPT
1.
Which Medicare Supplement policy provides the most comprehensive coverage for
Medicare Part A and Part B cost-sharing for new enrollees after 2020?
A. Plan A
B. Plan G
C. Plan F
D. Plan K
Correct Answer: B
Rationale: Plan G offers the broadest coverage available to new enrollees,
covering all Medicare-approved gaps except the Part B deductible.
2.
An applicant age 68 applies for a Medicare Supplement policy during open
enrollment. Which underwriting action may the insurer take?
A. Decline coverage due to age
B. Impose a waiting period for preexisting conditions
C. Require medical underwriting
D. Increase premiums based on health status
,Correct Answer: B
Rationale: During open enrollment, insurers must issue the policy regardless of
health, but may apply a limited waiting period for preexisting conditions.
3.
Which benefit is NOT covered by Original Medicare but may be covered under a
Medicare Supplement policy?
A. Hospice care
B. Skilled nursing coinsurance
C. Preventive services
D. Prescription drugs
Correct Answer: B
Rationale: Medicare Supplement policies help cover coinsurance and cost-sharing
amounts, including skilled nursing facility coinsurance.
4.
A Medicare Supplement policy is best described as:
A. Replacing Original Medicare
B. Coordinating benefits with Medicaid
C. Supplementing Medicare-approved expenses
D. Providing managed care services
Correct Answer: C
Rationale: Medicare Supplement policies pay certain costs not fully covered by
Original Medicare.
,5.
Which statement about Medicare Supplement policy renewability is correct?
A. Policies may be canceled for excessive claims
B. Renewal is optional for the insurer
C. Policies are guaranteed renewable for life
D. Coverage ends at age 75
Correct Answer: C
Rationale: Medicare Supplement policies are guaranteed renewable as long as
premiums are paid.
6.
Which individual would MOST benefit from purchasing a Long Term Care (LTC)
insurance policy?
A. A healthy 45-year-old planning for retirement
B. A 67-year-old with Medicare Advantage
C. A 72-year-old receiving Medicaid
D. A 60-year-old currently hospitalized
Correct Answer: A
Rationale: LTC insurance is most cost-effective and beneficial when purchased
before care is needed and while the applicant is healthy.
7.
Which service typically qualifies as Long Term Care?
A. Acute hospital treatment
B. Rehabilitation following surgery
C. Custodial assistance with daily activities
D. Emergency room services
, Correct Answer: C
Rationale: LTC focuses on custodial care, including assistance with activities of
daily living.
8.
Activities of Daily Living (ADLs) include all of the following EXCEPT:
A. Bathing
B. Dressing
C. Managing finances
D. Transferring
Correct Answer: C
Rationale: Managing finances is considered an Instrumental Activity of Daily
Living (IADL), not an ADL.
9.
A Long Term Care policy benefit trigger commonly requires the insured to:
A. Be hospitalized for 30 days
B. Be unable to perform at least two ADLs
C. Reach age 65
D. Exhaust Medicare benefits
Correct Answer: B
Rationale: Most LTC policies require inability to perform two or more ADLs or
cognitive impairment.
SUPPLEMENT & LONG TERM CARE
INSURANCE LICENSING EXAM
QUESTIONS AND 100% VERIFIED
ANSWERS WITH RATIONALES
GRADED A+
GUARANTEED PASS ON THE FIRST ATTEMPT
1.
Which Medicare Supplement policy provides the most comprehensive coverage for
Medicare Part A and Part B cost-sharing for new enrollees after 2020?
A. Plan A
B. Plan G
C. Plan F
D. Plan K
Correct Answer: B
Rationale: Plan G offers the broadest coverage available to new enrollees,
covering all Medicare-approved gaps except the Part B deductible.
2.
An applicant age 68 applies for a Medicare Supplement policy during open
enrollment. Which underwriting action may the insurer take?
A. Decline coverage due to age
B. Impose a waiting period for preexisting conditions
C. Require medical underwriting
D. Increase premiums based on health status
,Correct Answer: B
Rationale: During open enrollment, insurers must issue the policy regardless of
health, but may apply a limited waiting period for preexisting conditions.
3.
Which benefit is NOT covered by Original Medicare but may be covered under a
Medicare Supplement policy?
A. Hospice care
B. Skilled nursing coinsurance
C. Preventive services
D. Prescription drugs
Correct Answer: B
Rationale: Medicare Supplement policies help cover coinsurance and cost-sharing
amounts, including skilled nursing facility coinsurance.
4.
A Medicare Supplement policy is best described as:
A. Replacing Original Medicare
B. Coordinating benefits with Medicaid
C. Supplementing Medicare-approved expenses
D. Providing managed care services
Correct Answer: C
Rationale: Medicare Supplement policies pay certain costs not fully covered by
Original Medicare.
,5.
Which statement about Medicare Supplement policy renewability is correct?
A. Policies may be canceled for excessive claims
B. Renewal is optional for the insurer
C. Policies are guaranteed renewable for life
D. Coverage ends at age 75
Correct Answer: C
Rationale: Medicare Supplement policies are guaranteed renewable as long as
premiums are paid.
6.
Which individual would MOST benefit from purchasing a Long Term Care (LTC)
insurance policy?
A. A healthy 45-year-old planning for retirement
B. A 67-year-old with Medicare Advantage
C. A 72-year-old receiving Medicaid
D. A 60-year-old currently hospitalized
Correct Answer: A
Rationale: LTC insurance is most cost-effective and beneficial when purchased
before care is needed and while the applicant is healthy.
7.
Which service typically qualifies as Long Term Care?
A. Acute hospital treatment
B. Rehabilitation following surgery
C. Custodial assistance with daily activities
D. Emergency room services
, Correct Answer: C
Rationale: LTC focuses on custodial care, including assistance with activities of
daily living.
8.
Activities of Daily Living (ADLs) include all of the following EXCEPT:
A. Bathing
B. Dressing
C. Managing finances
D. Transferring
Correct Answer: C
Rationale: Managing finances is considered an Instrumental Activity of Daily
Living (IADL), not an ADL.
9.
A Long Term Care policy benefit trigger commonly requires the insured to:
A. Be hospitalized for 30 days
B. Be unable to perform at least two ADLs
C. Reach age 65
D. Exhaust Medicare benefits
Correct Answer: B
Rationale: Most LTC policies require inability to perform two or more ADLs or
cognitive impairment.
