DC Disability and Long-Term Care Insurance Flashcards

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

Answer: Compound inflation protection rider

A compound inflation protection rider automatically increases LTC benefits each year (typically 3–5% compounded), helping benefits keep pace with rising long-term care costs.

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

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

Under DC's LTC Partnership Program, policyholders can protect assets dollar-for-dollar equal to the benefits paid by a qualifying LTC policy when applying for Medicaid.

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

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

The waiver of premium provision suspends the insured's obligation to pay premiums while they are receiving disability benefits, typically after a 90-day waiting period.

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:

Answer: Protect senior consumers from purchasing unsuitable or overpriced coverage

DC's LTC consumer protection rules for seniors require detailed suitability disclosures to ensure older consumers understand what they are buying and that the policy meets their needs and financial situation.

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

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

The 'any occupation' definition is more restrictive for the insured—benefits are only payable if the insured cannot work in any occupation for which they are reasonably suited by education, training, or experience.

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

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

Pre-existing condition exclusions prevent adverse selection—the tendency of people with known health issues to seek out insurance—which would cause premium costs to become unsustainable.