LONG TERM CARE CERTIFICATION TRAINING (8HRS)
Exam Answers.
To determine whether or not long-term care policies can be considered similar policy
forms, they are classified as all of the following EXCEPT - Correct Answer Independent
When referring to an activity of daily living, the term "transferring" means - Correct Answer
Moving in or out of bed, wheelchair or chair
All of the following are factors that point to an increasing need for long-term care
insurance EXCEPT - Correct Answer Family and friends are not reliable
Which of the following best describes taxation of long-term care premiums? - Correct
Answer Premiums are tax deductible up to 10% of adjusted gross income
Which of the following will qualify as an exceptional increase in policy premium rates? -
Correct Answer Changes in laws that affect all insurers of similar products
Who must develop and maintain standards for long-term care insurance client suitability?
- Correct Answer The insurance company
In 1996, upon retirement at age 65, a retired executive purchased a long-term care
insurance benefits. What taxes are due? - Correct Answer None
All of the following factors will increase a prospect's long-term care insurance premium
EXCEPT - Correct Answer Increasing elimination period
Which of the following would be the best long-term care facility choice for a person who
needs the most specialized care? - Correct Answer Nursing home
A husband has one long-term care plan and his wife has another. The husband's plan
pays an indemnity of $150 per day and the wife's plan pays 50% of the daily rate. If they
are both in care facility that charges $250 per day, how much per day will they pay out of
their own pocket after elimination period? - Correct Answer $225
A long-term care insurance prospect is comparing a tax-qualified plan with a nonqualified
plan. All of the following would be considered advantages for nonqualified plans EXCEPT
- Correct Answer Tax deductibility
An insured has a tax qualified long-term care contract. To receive tax qualified benefits,
the insured must have all of the following EXCEPT - Correct Answer Medical necessity
A spouse provides around the clock care for a long-term care(LTC) benefit recipient. Now,
the spouse needs some minor surgery that requires an overnight hospital stay and will not
be able to care for the disabled spouse for a few days. If the LTC policy provides for the
,appropriate coverage, which of of the following would provide in-home care for the
disabled spouse? - Correct Answer Respite care
A policyowner's long-term care plan covers all levels of care, including skilled nursing,
custodial, hospice, and adult care. Rank these care levels in the most typical progression
from the lowest to terminal care - Correct Answer Adult day care, custodial, skilled
nursing, hospice
Which of the following describes the difference care coordination benefits and custodial
care benefits? - Correct Answer Care coordination benefit cover costs of general care
planners, while custodial care benefits cover the costs of people who assist the disabled
person with personal care
Which of the following is a reason for using activities of daily living as a trigger for long-
term care benefits? - Correct Answer The inability to perform these activities makes
independent living impossible
Which of the following would automatically qualify a person for long-term care benefits? -
Correct Answer Cognitive impairment such as Alzheimer's disease
A long-term care policy owns a spacious home that needs routine maintenance that he is
unable to do. Futhermore, shopping has become difficult because he no longer drives and
often does not have transportation. Just managing his prescriptions is a chore. What kind
of facility might he consider at this time? - Correct Answer Assisted living
What is the maximum allowed period of time for insurer to pay on a clean claim? - Correct
Answer 30 days
Which of the following does NOT describe hospice care? - Correct Answer It provides
care to people with life expectancies of 1 to 2 years
When an insured chooses the indemnity method of benefit payment, the insurer will pay -
Correct Answer The fixed benefit amount, regardless of the actual charge.
Many factors may determine long-term care premiums, including elimination period and
benefit period. For the lowest premium, a policyowner should select which of the
following? - Correct Answer Long elimination period and short benefit period
Which of the following prospects is likely to have the lowest long-term care insurance
premium? - Correct Answer ?
Funding for the first Partnership Program was provided by the - Correct Answer Robert
Wood Johnson Foundation.
Which of the following persons is NOT eligible for Medicare? - Correct Answer A person
who has been entitled to Social Security Disability for 1 year
, When insurers determine premium rates for long-term care policies, they take into
consideration all of the following factors EXCEPT - Correct Answer Adverse selection
Which of the following is NOT the mission of the NAIC? - Correct Answer Write and enact
legislation
For the purpose of life insurance underwriting, a 35-year-old male who is in excellent
physical condition with no known medical problems would most likely be classified as a -
Correct Answer preferred risk
A top producer, who represents only one company, has a -term care insurance first-year
lapse ratio that increased significantly from one year to the next. This fact may indicate -
Correct Answer Unsuitable sales
Which is the following statements is correct? - Correct Answer Medicare will cover nursing
home care if it is part of the treatment for covered illness
To qualify under the Partnership Program, a policy must include all of the following
provisions EXCEPT - Correct Answer ?
Which of the following would NOT be allowed membership in the NAIC? - Correct Answer
A federal official
The agent is known as the "Field Underwriter" because of the information he/she gathers
for the insurer. This helps the insurer - Correct Answer ?
The Medical information Bureau(MIB) helps insurer compare medical information they
have collected on a potential insured with the information received from which of the
following? - Correct Answer Other insurers
The medical Information Bureau, which is supported by insurance companies, was
designed to protect - Correct Answer Insurance companies from adverse selection by
high risk persons
For personal long-term care insurance, premiums are deductible to the extent they
exceed - Correct Answer 10% of adjusted gross income
An insured has a long-term care insurance policy. He has had the policy for 17 year. Mark
is 81 years old and has serious health problems. The company would like to cancel the
policy. What are the company's options? - Correct Answer Keep the policy in force as long
as premiums are paid
When does Medicare cover nursing home care? - Correct Answer Only if it is part of
treatment for a covered illness or injury
Exam Answers.
To determine whether or not long-term care policies can be considered similar policy
forms, they are classified as all of the following EXCEPT - Correct Answer Independent
When referring to an activity of daily living, the term "transferring" means - Correct Answer
Moving in or out of bed, wheelchair or chair
All of the following are factors that point to an increasing need for long-term care
insurance EXCEPT - Correct Answer Family and friends are not reliable
Which of the following best describes taxation of long-term care premiums? - Correct
Answer Premiums are tax deductible up to 10% of adjusted gross income
Which of the following will qualify as an exceptional increase in policy premium rates? -
Correct Answer Changes in laws that affect all insurers of similar products
Who must develop and maintain standards for long-term care insurance client suitability?
- Correct Answer The insurance company
In 1996, upon retirement at age 65, a retired executive purchased a long-term care
insurance benefits. What taxes are due? - Correct Answer None
All of the following factors will increase a prospect's long-term care insurance premium
EXCEPT - Correct Answer Increasing elimination period
Which of the following would be the best long-term care facility choice for a person who
needs the most specialized care? - Correct Answer Nursing home
A husband has one long-term care plan and his wife has another. The husband's plan
pays an indemnity of $150 per day and the wife's plan pays 50% of the daily rate. If they
are both in care facility that charges $250 per day, how much per day will they pay out of
their own pocket after elimination period? - Correct Answer $225
A long-term care insurance prospect is comparing a tax-qualified plan with a nonqualified
plan. All of the following would be considered advantages for nonqualified plans EXCEPT
- Correct Answer Tax deductibility
An insured has a tax qualified long-term care contract. To receive tax qualified benefits,
the insured must have all of the following EXCEPT - Correct Answer Medical necessity
A spouse provides around the clock care for a long-term care(LTC) benefit recipient. Now,
the spouse needs some minor surgery that requires an overnight hospital stay and will not
be able to care for the disabled spouse for a few days. If the LTC policy provides for the
,appropriate coverage, which of of the following would provide in-home care for the
disabled spouse? - Correct Answer Respite care
A policyowner's long-term care plan covers all levels of care, including skilled nursing,
custodial, hospice, and adult care. Rank these care levels in the most typical progression
from the lowest to terminal care - Correct Answer Adult day care, custodial, skilled
nursing, hospice
Which of the following describes the difference care coordination benefits and custodial
care benefits? - Correct Answer Care coordination benefit cover costs of general care
planners, while custodial care benefits cover the costs of people who assist the disabled
person with personal care
Which of the following is a reason for using activities of daily living as a trigger for long-
term care benefits? - Correct Answer The inability to perform these activities makes
independent living impossible
Which of the following would automatically qualify a person for long-term care benefits? -
Correct Answer Cognitive impairment such as Alzheimer's disease
A long-term care policy owns a spacious home that needs routine maintenance that he is
unable to do. Futhermore, shopping has become difficult because he no longer drives and
often does not have transportation. Just managing his prescriptions is a chore. What kind
of facility might he consider at this time? - Correct Answer Assisted living
What is the maximum allowed period of time for insurer to pay on a clean claim? - Correct
Answer 30 days
Which of the following does NOT describe hospice care? - Correct Answer It provides
care to people with life expectancies of 1 to 2 years
When an insured chooses the indemnity method of benefit payment, the insurer will pay -
Correct Answer The fixed benefit amount, regardless of the actual charge.
Many factors may determine long-term care premiums, including elimination period and
benefit period. For the lowest premium, a policyowner should select which of the
following? - Correct Answer Long elimination period and short benefit period
Which of the following prospects is likely to have the lowest long-term care insurance
premium? - Correct Answer ?
Funding for the first Partnership Program was provided by the - Correct Answer Robert
Wood Johnson Foundation.
Which of the following persons is NOT eligible for Medicare? - Correct Answer A person
who has been entitled to Social Security Disability for 1 year
, When insurers determine premium rates for long-term care policies, they take into
consideration all of the following factors EXCEPT - Correct Answer Adverse selection
Which of the following is NOT the mission of the NAIC? - Correct Answer Write and enact
legislation
For the purpose of life insurance underwriting, a 35-year-old male who is in excellent
physical condition with no known medical problems would most likely be classified as a -
Correct Answer preferred risk
A top producer, who represents only one company, has a -term care insurance first-year
lapse ratio that increased significantly from one year to the next. This fact may indicate -
Correct Answer Unsuitable sales
Which is the following statements is correct? - Correct Answer Medicare will cover nursing
home care if it is part of the treatment for covered illness
To qualify under the Partnership Program, a policy must include all of the following
provisions EXCEPT - Correct Answer ?
Which of the following would NOT be allowed membership in the NAIC? - Correct Answer
A federal official
The agent is known as the "Field Underwriter" because of the information he/she gathers
for the insurer. This helps the insurer - Correct Answer ?
The Medical information Bureau(MIB) helps insurer compare medical information they
have collected on a potential insured with the information received from which of the
following? - Correct Answer Other insurers
The medical Information Bureau, which is supported by insurance companies, was
designed to protect - Correct Answer Insurance companies from adverse selection by
high risk persons
For personal long-term care insurance, premiums are deductible to the extent they
exceed - Correct Answer 10% of adjusted gross income
An insured has a long-term care insurance policy. He has had the policy for 17 year. Mark
is 81 years old and has serious health problems. The company would like to cancel the
policy. What are the company's options? - Correct Answer Keep the policy in force as long
as premiums are paid
When does Medicare cover nursing home care? - Correct Answer Only if it is part of
treatment for a covered illness or injury
