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LONG-TERM CARE EXAM QUESTIONS AND 100% VERIFIED ANSWERS
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LONG-TERM CARE EXAM QUESTIONS AND 100% VERIFIED ANSWERS....
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LONG-TERM CARE EXAM QUESTIONS AND100% VERIFIED ANSWERS
Which of the following statements regarding group long-term care insurance is
NOT true? - ANSWER Employers choose plan coverage for participants.
Group rates are lower.
Plans are tailored to meet individual needs.
Evidence of insurability is not required.
Explanation
Group long-term care policies have lower rates, and evidence of insurability is
not required. However, plans are not
tailored to the individual; the employer chooses coverage for all employees who
are participating in the plan.
Reference: 21.10 in the License Exam Manual
A qualified long-term care insurance policy must contain which of the
following requirements? - ANSWER Coverage for conditions that result from
war
Coverage for drug and alcohol dependency
A probationary period of no longer than 180 days
Guaranteed renewability
Explanation
As a result of the 1996 Health Insurance Portability and Accountability Act
(HIPAA), all long-term care policies sold
today must be guaranteed renewable. The insurer cannot cancel the policy and
must renew coverage each year, as
long as the insured pays the premiums.
Reference: 21.8 in the License Exam Manual
If a long-term care policy is considered tax qualified, - ANSWER its benefits
will qualify for tax-exempt treatment
it must base premiums solely on the insured's age, health, and benefits
it must conform to certain standards established by the individual state in which
it
is offered
it can be offered as an employee benefit by an employer
Explanation
,Benefits payable under long-term care policies are not taxable to the insured,
provided the policy is considered tax
qualified. This means that the policy's provisions must conform to certain
standards and guidelines set forth by the
Internal Revenue Code and the Health Insurance Portability and Accountability
Act of 1996 (HIPAA).
Reference: 21.8 in the License Exam Manual
For long-term care policies to be considered qualified, a health professional
must certify that a chronic illness will last
for a minimum of - ANSWER 6 months
9 months
3 months
12 months
Explanation
A health professional must provide certification stating that an individual's
chronic illness will last for a minimum of 90
days (3 months). This is one of the requirements that must be met in order of a
long-term care policy to be considered
qualified.
Reference: 21.8 in the License Exam Manual
In terms of long-term care, which of the following WOULD be covered by a
Medicare supplement insurance plan? - ANSWER Adult day care
Custodial care
Assisted living
Hospice care
Explanation
Medicare supplement insurance will cover hospice care if the insured has a
terminal illness and is not expected to live
more than six months. Grief counseling would not be covered. Custodial care,
assisted living and adult day care are
benefits that may be covered under a long-term care insurance policy.
Reference: 21.3.1 in the License Exam Manual
Which of the following terms describes the ability to perform certain
independent tasks? - ANSWER Listing of daily activities
Activities of daily living
, Daily tasks of living
Activities of daily tasks
Explanation
Activities of daily living (ADLs) are a standardized list of routine and basic
functions that are used to determine a
person's ability to live independently.
Reference: 21.4.1 in the License Exam Manual
A long-term care policy can be terminated because of the insured's - ANSWER
nonpayment of premiums
age
loss of physical capability
deterioration of mental capacity
Explanation
Long-term care policies cannot be terminated on the grounds of the insured's
age, deterioration of mental capacity, or
loss of physical capability.
Reference: 21.11 in the License Exam Manual
Which of the following statements explains why a person would NOT be a good
applicant for a long-term care
insurance policy? - ANSWER He already has a long-term disability policy.
Because of his financial situation, he must rely on Medicaid to pay the cost of
long-term care.
He has a Medicare supplement policy that will cover the cost of long-term care.
He has substantial savings put aside to cover the cost of long-term care.
Explanation
If a person is destitute, Medicaid will pay the cost of a long-term care. Because
the cost of long-term care can be high,
often as much as $50,000 or more a year, even a large savings is not a guarantee
of continued care. Medicare
supplement policies do not pay LTC costs, nor do disability policies.
Reference: 21.3.2 in the License Exam Manual
All of the following are types of care defined in long-term care insurance
policies EXCEPT - ANSWER adult day care
respite care
home day care
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