1. What is the purpose of a restoration of benefits provision in a long-term care insurance policy?
2. What is the purpose of a bed reservation benefit in a long-term care insurance policy?
3. Which of the following statements concerning the benefit period in a long-term care policy is (are) correct?
I. It begins after the elimination period is satisfied.
II. The number of days in the benefit period is multiplied by the policy’s daily benefit to determine a pool of money if such an approach is used for benefit payments.
A. I only
B. II only
C. Both I and II
D. Neither I nor II
4. Which of the following statements concerning the effect of NAIC model legislation for long-term care insurance policies is (are) correct?
I. Insurers must offer the applicant the right to purchase some type of inflation protection.
II. Insurers must base benefit eligibility on a prior hospitalization requirement.
A. I only
B. II only
C. Both I and II
D. Neither I nor II
5. Do you think you need a long-term care policy? Why or why not?