34. With regard to a life insurance policy that can accelerate its death benefit for payment of qualified long-term care expenses, which of the following statements is true? a. The policy must meet the requirements of Section 7702B of the Internal Revenue Code. b. The policy can be sold only for the purpose of a state's long-term care partnership program. c. The policy can pay an accelerated benefit only if the condition that triggered the benefit is diagnosed as permanent. d. The policy can pay an accelerated benefit only if the condition that triggered the benefit will result in the insured's death. 35. Rising debt with falling equity is characteristic of what kind of home loan? a. reverse mortgage b. conventional mortgage c. second mortgage d. structured mortgage 36. Who are the best candidates for self-funding long-term care costs? a. those with moderate incomes and assets b. those with above-average wealth whose disposable incomes exceed the cost of care c. those with few assets and low or no incomes d. those with high incomes but low net worth 37. What is the unethical sales practice of making exaggerated or unsubstantiated statements? a. twisting b. puffing c. inducement d. bait and switch
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With regard to a life insurance policy that can accelerate its death benefit for payment of qualified long-term care expenses, which of the following statements is true? a. The policy must meet the requirements of Section 7702B of the Internal Revenue Code. b. Show moreā¦
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26. Ricardo has been in and out of rehab because of his addiction to alcohol, some of his stays lasting for months. Will Ricardo's LTCI policy cover his repeated institutionalization? a. Yes, because it is a chronic condition. b. No, because LTCI insurance doesn't pay for any sort of rehabilitation. c. Yes, because there is a legitimate long-term need. d. Probably not, because treatment for drug or alcohol addiction is an exclusion in most LTCI policies. 27. Which LTCI policy feature prevents the insurer from terminating the policy, raising the rates, or making changes in any provisions based on the health of the insured while the policy is in force? a. restoration of benefits provision b. nonforfeiture provision c. guaranteed renewability provision d. return of premium provision 28. A few years ago, Gary purchased a long-term care partnership policy. He had paid a total of $7,000 in premiums when he made claim for benefits. The policy paid out its full $200,000 benefit. If Gary needs to turn to Medicaid for continued payment of his long-term care costs, how much of his assets will be protected from the spend-down requirement due to his partnership policy? a. $7,000 b. $193,000 c. $200,000 d. $207,000 29. All of the following statements regarding today's long-term care partnership programs are true EXCEPT: a. they are intended to help alleviate the financial burden on state Medicaid programs b. they require that individuals purchase a qualified long-term care partnership policy c. they are designed to protect all of an individual's assets and income from the Medicaid spend-down requirement d. they do not guarantee that an individual who purchased a policy will qualify for Medicaid benefits
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