31. Long-term care policies used in partnership programs must: Da. be tax qualified as defined by HIPAA b. provide benefits for care only in nursing homes c. cover LTC services for no more than 6 months D d. conform to requirements set forth by the Medicare Modernization Act of 2003 32. All of the following providers of partnership qualified LTCI policies are engaging in permissible practices permitted within the standards set forth In the NAIC Long-Term Care Model Act EXCEPT: pa. Insurer A requires all applicants to reveal information about current policies held and whether they intend to replace an existing policy b. Insurer B provides the applicant with a state published buyer's guide to LTC Insurance instead of the NAIC's Shopper's Guide to Long Term Care Insurance c. Insurer Cdiscloses Its rate Increase history before the application is accepted od. Insurer ID offers its customers fast, automatic issuing of policies and handles underwriting later, when claims are submitted 33. All of the following are provisions commonly Included In cash value life Insurance policies that can provide a source of funds for long-term care needs EXCEPT: Di annultimation ob. accelerated benefits o c. cash value loans o d. policy surrender 34. How does a life Insurance lifetime settlement differ from a life Insurance viatical settlements pa. A lifetime settlement does not require a terminal Illness, a viatical settlement does. ob. A lifetime settlement is available to all policyholders; a viatical settlement is available only to healthy seniors, typically those between the ages of $5 and 65. C. A lifetime settlement is between the Insurance company and the Insured; a viatical settlement is between the insured and a third party. o d. A lifetime settlement payout will equal the policy's death benefit; a viatical settlement payout is less than the policy's cash value. 35. Last year, William purchased a hybrid long-term care annuity with a single premium of $100,000. The contract provides for the payment of an LTC benefit equal to twice the account value If long-term care is needed. Which of the following statements is true? Da. William must pay a separate and additional premium for the long term care benefit. b. William can access the contract's values only if and when he meets the LTC benefit trigger. pc. William will be taxed on any changes made against the contract's value for the LTC benefit. o d. William can take withdrawals from the contract for purposes other than long tram care. 36. What is the primary drawback to relying on a health savings account to fund long term care? Da Its maximum annual contribution limits ob. Its tax favored status o c. the fact that it is a custodial account od. the fact that qualified medical expenses are difficult to determine 37. What is the primary purpose of a suitability letter sent from an Insurance company to a long term care policy applicant? D a. to Inform the applicant that the Insurer has determined the policy to be unsuitable and has terminated the underwriting process ob. to inform the applicant that the insurer questions the suitability of the applied for policy and to ask the applicant to advise the Insurer as to whether it should proceed with the underwriting process c. to Inform the applicant that the insurer has reviewed the facts of the case and has determined that the applied for policy is well suited for the applicant's goals, needs, and personal circumstances od. to obtain personal information that will help the insurer determine if the applied for policy is suitable for the applicant 38. How Is twisting best described? Da making exaggerated or unsubstantiated claims about a policy's benefits or features ob. Inducing a policyholder to terminate a policy and take out a new policy when it is not in the Insured's best Interest to do so o c. soliciting a customer to purchase a particular policy and then diverting him or her to another policy without an adequate explanation od. transferring or placing insurance with an insurer other than the insurer expressly chosen by the applicant or policyholder without his or her consent 39. A partnership qualified LTCI policy would likely be appropriate for which of the following? Da. Jim, who lives solely on Social Security Oh. Scott, who makes $85,000 per year and has $750,000 In savings D C. Humbert, who has just won $100 million In the lottery