Choose wisely. There is only one correct answer to each question.
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1.
Which of the following is true about long-term care policies with low premiums and permissive medical standards?
All of the above are true. Some companies that were "easy-issue" or competed most aggressively on price have had to sharply increase premiums, or left the business entirely.
2.
If you are turned down for life insurance, you will not qualify for long-term care insurance either.
False. Some people who have unsuccessfully applied for life insurance incorrectly assume they cannot qualify for long-term care insurance either.
3.
One of the biggest consumer worries about long-term care insurance is _______.
Price stability. The issue of long-term care rate stability has always been among the consumers biggest worries when thinking about this coverage.
4.
Insurance applicants who are neither ideal customers nor completely uninsurable are called _______.
Substandard risks. Substandard risk applicants seeking coverage are those who are neither ideal nor completely uninsurable.
5.
The objective of good insurance underwriting is to eliminate customers who are likely to have a claim.
False. The underwriters do not expect to issue policies to only those people who will never file a claim.