Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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All state partnership LTC policies must be
a. | federally tax qualified | b. | non-tax qualified | c. | tax-qualified at the
option of the state | d. |
tax-qualified at the option of the
insured |
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2.
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Agents soliciting LTC policies must complete:
a. | 8 hours of initial LTC training and 8 hours of LTC Partnership training every
compliance period | b. | 4 hours of initial LTC training and 4 hours of
LTC Partnership training every compliance period | c. | 8 hours of initial LTC training, including LTC
Partnership training, and 4 hours of LTC training every compliance period
thereafter | d. | 8 hours of LTC training, including LTC Partnership training, every compliance
period |
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3.
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What is required of a state that wishes to implement an LTC Partnership
program?
a. | amendment of state insurance laws to exempt certain assets equal to LTC benefits from
Medicaid eligibility requirements | b. | amendment of Medicaid laws to exempt certain
assets equal to LTC benefits from Medicaid eligibility requirements | c. | amend state laws to
permit the sale of tax qualified LTC policies within that state | d. | all of the
above |
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4.
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Which federal law permits the establishment of LTC Parternship plans
nationwide?
a. | OBRA | b. | COBRA | c. | HIPAA | d. | DRA |
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5.
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Which federal law clarified the tax-status of private LTC policies?
a. | OBRA | b. | COBRA | c. | HIPAA | d. | DRA |
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6.
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All of the following are reasons for expanding the LTC Partnership Program
EXCEPT:
a. | educating consumers about the need, risk and cost of LTC | b. | curb insurance
spending by Medicaid on LTC expense | c. | provide tax deductions for purchasers of
qualified LTC policies | d. | encourage the private LTC insurance
industry |
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7.
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Which of the following is true regarding reciprocity of benefits under the LTC
Partnership plans?
a. | nationwide reciprocity is a goal, but is not currently available | b. | the four original
states currently enjoy reciprocity, but not with other states | c. | only those states
that have implemented partnership plans enjoy reciprocity | d. | none of the states
currently has any reciprocal benefits |
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8.
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A partnership LTC policy will “shield” the insured from:
a. | Medicaid’s asset requirements | b. | Medicaid’s income
requirement | c. | Medicaid’s estate recovery rules | d. | a and c |
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9.
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Which of the following applicants must include “automatic inflation
protection” as part of his or her LTC Partnership policy?
a. | Chris, age 56 | b. | Pat, age 67 | c. | Lou, age
74 | d. | all partnership LTC plans must include automatic inflation
protection |
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10.
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Which of the following provisions is the main difference between partnership
qualified (PQ) LTC policies and non-PQ policies?
a. | inflation protection | b. | guaranteed renewability | c. | free look
provision | d. | tax free benefit payments |
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11.
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Abby Normal purchased a long-term care policy twenty years ago when she was
56. Today, she wishes to have the asset protection afforded by her state’s LTC partnership
program. Which of the following courses of action will NOT provide Abby with that protection?
a. | surrender the old policy for a new PQ policy | b. | request an
endorsement on the old policy for inflation protection and new issue date | c. | continue to hold the
old policy, as long as it has inflation protection, it is automatically partnership
qualified | d. | either a or b |
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12.
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In order to enjoy the benefits of a partnership qualified LTC policy, all of the
following are required EXCEPT:
a. | the policy must be tax-qualified under HIPAA | b. | the policy must
contain consumer protections based on the NAIC Model LTC Policy | c. | the insured must be
a resident of the state when he or she collects policy benefits | d. | the policy must be
issued after the date the state partnership plan becomes effective in the insured’s state
of residence |
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13.
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Under the Deficit Reduction Act of 2005 (DRA), a state that implements a LTC
partnership plan may:
a. | not impose any requirements on partnership qualified plans addition to those required
by the DRA | b. | impose requirements on partnership qualified plans addition to those required by the
DRA, if the state also imposes the same requirements on non-partnership policies | c. | impose requirements
on partnership qualified plans addition to those required by the DRA, but does not have to impose the
same requirements on non-partnership policies | d. | none of the above are
true |
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14.
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Martina bought a partnership policy at age 65. Her policy must
provide:
a. | compound inflation protection | b. | some level of inflation
protection | c. | simple inflation protection | d. | no inflation protection is required, but the
policy can be sold |
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15.
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Purchasers of partnership qualified LTCI:
a. | automatically qualify for Medicaid benefits once their policy’s benefits are
exhausted | b. | may protect their assets and income from Medicaid eligibilty
requirements | c. | locks in current Medicaid eligibility requires relating to assets, but not
income | d. | none of the above |
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16.
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The purchaser of a partnership LTC policy should be aware that:
a. | Medicaid does not provide the same level of LTC services as the partnership policy
may provide | b. | Medicaid benefits are not automatic | c. | a partnership LTC policy may be more costly
thatn a non-partnership policy | d. | all of the
above |
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17.
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Jake has a $100,000 partnership LTC policy. He has been in a nursing
home for two years and the policy has paid $90,000 in benefits. He applies for Medicaid
benefits in anticipation of exhausting his policy’s benefits in a couple of months. What
level of asset protection will Jake enjoy?
a. | $90,000 | b. | $100,000 | c. | depends on when
Medicaid processes his application | d. | Jake cannot apply for Medicaid benefits before
his policy is exhausted |
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18.
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Juanita has a partnership qualified LTC policy and wishes to change the level of
coverage from comprehensive coverage to a facilities-only plan as a way to reduce premium
costs. Under the Deficit Reduction Act, such a change:
a. | is permitted, by the policy loses is partnership status | b. | is permitted,
provided inflation protection is retained | c. | is not permitted, although a change from
facilities-only to comprehensive plan would be | d. | is not
permitted |
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19.
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The original four demonstration partnership programs in New York, California,
Indiana, and Connecticut operate on one of two models: dollar-for-dollar or total asset
protection. New states implementing partnership programs may use:
a. | either dollar-for-dollar or total asset protection | b. | total asset
protection only | c. | dollar-for-dollar only | d. | reimbursement plans
only |
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20.
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States wishing to implement a LTC Partnership plan, must submit which of the
following to the Centers for Medicare and Medicaid Services (CMS)
a. | state plan amendment (SPA) | b. | qualified state long-term care insurance
partnership (QSLTCIP) | c. | NAIC Model legislation | d. | all of the
above |
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