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1.
It is better to have a higher maximum daily benefit than a longer benefit period because _______.
Any portion of the daily benefit unused remains available for use later. With virtually all policies now sold, any portion of the daily benefit that is not used remains available.
2.
Which of the following is not an important long-term care policy variable used in designing a policy?
The cost of long-term care today. While the cost of long-term care is important, the future cost is more important, and that is covered by the maximum daily benefit variable.
3.
Which of the six activities of daily living is sometimes omitted from the long-term care insurance benefit triggers?
Bathing. Some older policies use a list of five ADLs that does not include bathing.
4.
Because the consumer can modify so many variables in a long-term care insurance policy, it is more customizable than most other consumer insurance.
True. The consumer's ability to tinker with the design of the policy in several ways makes it possible to customize LTC insurance more than the other types of policies most of us are familiar with.
5.
There were many problems with early long-term care insurance policies because _______.
Early policy underwriting was faulty due to lack of experience in this new market. Early policies suffered from poor underwriting; several years of additional experience have resulted in sounder underwriting and pricing practices.