DC DC Disability and Long-Term Care Insurance 3

Question 1

Which DC LTC insurance policy feature increases the daily or monthly benefit amount over time to help keep pace with inflation?

Accepted Answer

Compound inflation protection rider

Answer

Waiver of premium rider

Answer

Shared care rider

Answer

Return of premium rider

Question 2

In DC, a 'partnership' long-term care insurance policy allows the insured to:

Accepted Answer

Protect a portion of their assets equal to LTC benefits paid when later applying for Medicaid

Answer

Share LTC benefits with a spouse on the same policy

Answer

Purchase LTC coverage through their employer at a discounted rate

Answer

Receive tax credits equal to 50% of the premium paid

Question 3

A DC disability income policy's 'waiver of premium' provision means:

Accepted Answer

Premiums are waived while the insured is receiving disability benefits after a qualifying waiting period

Answer

The insured never has to pay premiums for the policy

Answer

The insurer waives its right to contest the policy after two years

Answer

Premiums are reduced by 50% after age 65

Question 4

Under DC law, an insurer that markets LTC insurance to consumers over age 65 is required to provide additional disclosures. These requirements are primarily intended to:

Accepted Answer

Protect senior consumers from purchasing unsuitable or overpriced coverage

Answer

Increase premium revenue for the insurer

Answer

Restrict the types of LTC policies available to seniors

Answer

Require seniors to purchase coverage through Medicare supplements instead

Question 5

A DC disability income policy's 'any occupation' definition of disability is generally considered:

Accepted Answer

Less favorable to the insured than own-occupation because benefits only pay if the insured cannot work in any occupation

Answer

More favorable to the insured than own-occupation

Answer

Identical to own-occupation in practice

Answer

Required by DC law for all disability policies

Question 6

Which of the following is a key reason why individual disability income insurance policies in DC may exclude a 'pre-existing condition'?

Accepted Answer

To prevent adverse selection by applicants who know they already have a disabling condition

Answer

DC law prohibits coverage of conditions that started before birth

Answer

To comply with the ACA individual mandate

Answer

Because pre-existing conditions are always covered by workers' compensation instead