LIfe Insurance North Carolina Medicare Supplement & Long-Term Care part2

Question Answer
Accelerated benefits with a LTC policy must inform the insured of the impact on Cash values
A MSP policy must be Garunteed issue
If Medicare changes, a MSP must Mirror the changes
The maximum first year commissions for a MSPs are 200%
In a replacement of a MSP the applicant must sign a Notice Regarding Replacement
What type marketing practices are prohibited in a LTC policy? Twisting(misrepresentation), high pressure sales, cold lead calling
A LTC policy must provide what type protection? Inflation
Twisting is: Making a misrepresentation or incomplete comparison with a policy from another insurance company in order to cause an insured to lapse a policy.
A MSP policy must use what type renewability: Guaranteed renwability
A LTC policy can’t be canceled for: Poor health
What is prohibited from being a requirement for LTC coverage?: Hospitalization
Marketing practices that are prohibited with a MSP include: Twisting (misrepresentation), high pressure sales, and cold lead calling
How are LTC premiums treated for taxes? Deductible over 10% of AGI on qualified plans
A LTC policy must be: Suitable
What is the eligibility for Medicare? 65 or older, ESRD(kidney failure), meet disability requirements
Who has primary coverage if an employee is 65, and has a employer group plan and Medicare? Employer group is primary
A LTC policy must provide a minimum of how much coverage: 12 month coverage
??Medicare Part B covers: Doctors, medical services
A LTC must be what in regards to the insurer being able to cancel it? Noncancelable
Levels of Care in a LTC policy are: Skilled Nursing, Intermediate Care, Custodial Care, Home Health, Adult Day Care, Respite Care
A LTC policy must give the insured an option for a secondary addressee
The grace period for a LTC policy is: 30 days
A canceled policy must be reinstated if there was: cognitive impairment
What are the benefit trigger in a LTC? Usually 2 or more ADLs or cognitive impairment (Alzheimer’s, severe dementia/not slight dementia)
Who administers Medicaid? The states administer Medicaid, with help of federal fund.
Who has primary coverage if an employee has ERSD? Employer group is primary for the first 30 months, the Medicare takes over as primary after the first 30 months
If the 30-day free look period is used, what happens to the premium? Fully refunded
Replacements in LTC polices can’t Have new preexisting condition exclusions
How is eligibility determined for Medicaid? Means tested, it is designed for the poor.

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