Life and Health California Exam Long-Term Care Insurance

Question 1

Under federal law, a long-term care insurance policy qualifies as a 'tax-qualified' policy if the insured is certified as unable to perform at least how many activities of daily living (ADLs)?

Accepted Answer

2 out of 6

Answer

A tax-qualified LTC policy requires that the insured be unable to perform at least 2 of 6 ADLs (bathing, dressing, toileting, transferring, continence, eating) for a period expected to last at least 90 days.

Question 2

Which of the following is NOT one of the six activities of daily living (ADLs) used to trigger LTC benefits?

Accepted Answer

Ambulating (walking)

Answer

The six standard ADLs are bathing, dressing, toileting, transferring, continence, and eating; ambulating (walking) is not among the federally recognized ADLs for LTC triggers.

Question 3

The 'elimination period' in a long-term care insurance policy functions similarly to:

Accepted Answer

A deductible expressed in days rather than dollars

Answer

The LTC elimination period is a time-based deductible during which the insured pays for care out of pocket before the policy begins paying benefits.

Question 4

Under California's long-term care insurance regulations, the minimum benefit period for individual LTC policies is:

Accepted Answer

24 months

Answer

California requires individual LTC policies to offer a minimum benefit period of at least 12 months, though 24-month and longer periods are standard for compliance with federal tax-qualified status.

Question 5

A long-term care policy that pays a fixed daily benefit regardless of the actual cost of care is called a(n):

Accepted Answer

Indemnity policy

Answer

An indemnity LTC policy pays a fixed daily benefit as specified in the policy, regardless of what the actual long-term care services cost.

Life and Health California Exam Practice Test

Life and Health California Exam Practice Test

Life and Health California Exam Long-Term Care Insurance