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1.Below are prohibited marketing practices with the exception of:

A. Twisting
B. Cold Lead Advertising
C. High Pressure Tactics
D. Fair Practice

ABCD

2. What must the insurer develop to market long-term care insurance?

A. Suitability standards
B. Rules of Conduct
C. Shopper's Guide
D. Consumer's Guide to Long-Term Care Insurance

ABCD

3. What is the one issue that does not need to be considered when developing suitability standards?

A. Does applicant have the ability to pay for proposed coverage?
B. What are the applicant's goals and needs with respect to long term care
C. Does the client have any other insurance?
D. What is the race of the applicant?

ABCD

4. The National Association of Insurance Commissioners requires each applicant be given a ___________ before a policy is issued.

A. List of Activities of Daily Living (ADLs)
B. Shoppers Guide
C. List of Services and Providers
D. Licensing Requirements

ABCD

5. The specific rule for sales commission for replacement policies is:

A. Sales commission is the same as for new policies
B. There is no specific rule
C. Sales commission is calculated on the difference between annual the premium of the new replacement coverage and premium of the original coverage
D. Sales commission is based on company policy

ABCD

6. A group policy can be issued by:

ABCD

7. Federal benefits are triggered by a person not being able to do two of the Activities of Daily Living (ADLs) below, with exception of ______________, which is not a trigger.

A. Dressing
B. Toileting
C. Bathing
D. Ambulating

ABCD

8. In California, applicants can purchase which of these policies?

A. Home care only
B. Nursing home care only
C. Comprehensive care
D. All of the above

ABCD

9. Care that is only for 24 hours, that can be either for medical or non-medical care, but must be in a licensed facility refers to:

A. Skilled nursing care
B. Respite care
C. Hospice care
D. Adult day care

ABCD

10. Eligibility for Medi-Cal is based on:

A. A certain age
B. Belonging to Medicare
C. Needing skilled nursing care
D. What your assets and income are

ABCD

11. The number of Activities of Daily Living (ADLs) that one is not able to do in order to qualify for Federal tax-qualified benefits is:

A. 5
B. 6
C. 2
D. 3

ABCD

12. The Health Insurance Portability and Accountability Act (HIPAA) will allow an LTC policyholder to:

A. Qualify for skilled nursing
B. Enter a residential care home
C. Deduct the long term care insurance premiums from their tax returns
D. Buy a low cost policy

ABCD

13. Reverse annuity mortgaged will allow someone to:

A. Put a second mortgage on their home
B. Sell their mortgage to an interested party
C. Have a bank pay you for you equity in your home as long as you live
D. All of the above

ABCD

14. A "Material Change" in a long term care insurance policy may make it ineligible for:

A. Skilled nursing
B. Residential care
C. Tax benefits
D. Community-based coverage

ABCD

15. What is one condition that must be met before receiving LTC benefits?

A. You must be over 65
B. You must meet the elimination or waiting period your policy requires
C. You must be in a nursing home
D. You must be very ill

ABCD

16. Who is eligible for "respite" care?

A. Yourself
B. Your agent
C. A member of your family
D. Your regular caregiver

ABCD

17. Hospice care is only for:

A. Relatives
B. The terminally ill
C. Medi-Cal applicants
D. Group insurance member

ABCD

18. What is the "free look" an applicant for a Long Term Care insurance policy has?

A. To be able to return the policy within 30 days and have premium returned
B. To look at the policy without paying premium
C. To examine the "Outline of Coverage"
D. To examine the insurer's underwriting

ABCD

19. The penalty, which will be assessed against an agent or broker who violates insurance regulations, can be as much as:

A. $3,000
B. $25,000