DC DC Disability and Long-Term Care Insurance 2

Question 1

A DC LTC insurance policy's 'benefit trigger' most commonly requires the insured to be unable to perform a certain number of activities of daily living (ADLs). The standard number is:

Accepted Answer

2 of 6

Answer

Most LTC policies trigger benefits when the insured is unable to perform at least 2 of 6 standard ADLs: bathing, continence, dressing, eating, toileting, and transferring.

Question 2

Which DC disability income policy provision ensures the insurer cannot cancel the policy or raise premiums as long as the insured pays premiums on time?

Accepted Answer

Guaranteed renewable

Answer

A guaranteed renewable policy cannot be canceled by the insurer as long as premiums are paid, though the insurer may increase premiums for an entire class of policyholders.

Question 3

In a DC disability income policy, a 'residual disability' benefit is designed to pay benefits when:

Accepted Answer

The insured returns to work but suffers a proportionate loss of income due to their disability

Answer

Residual (partial) disability benefits compensate the insured for proportional income loss when they return to work on a limited basis due to their disabling condition.

Question 4

A DC LTC insurer must offer a 'free-look' period of at least how many days for a newly issued LTC policy?

Accepted Answer

30 days

Answer

DC LTC insurance regulations require a 30-day free-look period, giving consumers more time than the standard 10-day period for other life/health products to review and return the policy.

Question 5

Under DC law, a group disability income policy provided by an employer is typically subject to:

Accepted Answer

ERISA (federal law) in addition to DC insurance regulations

Answer

Employer-sponsored group disability plans are governed by ERISA at the federal level as well as applicable DC insurance regulations for the insurance component.

DC - District of Columbia Insurance Practice Test

DC - District of Columbia Insurance Practice Test

DC DC Disability and Long-Term Care Insurance 2