CLAHS California Life, Accident and Health or Sickness Examination - Set 5 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: Benefits received under a federally tax-qualified long-term care policy are generally treated in which way for income tax?

Fully taxable as ordinary income

Taxed as capital gains

Subject to a penalty tax

Received income-tax-free, within limits

Question 42: Compared with a tax-qualified long-term care policy, a non-tax-qualified policy generally differs in which way?

Taxable benefits and nondeductible premiums

Its benefits are always tax-free

It must meet stricter federal standards

It cannot be sold in California

Question 43: The California Partnership for Long-Term Care gives buyers a special benefit through which mechanism?

Guaranteed acceptance regardless of health

A full refund of premiums at death

Dollar-for-dollar protection of assets from Medi-Cal

Free Medicare supplement coverage

Question 44: To carry the Partnership asset-protection benefit, California Partnership long-term care policies are required to include which feature?

A cash surrender value

A prior hospital stay requirement

Coverage limited to one year

Automatic inflation protection

Question 45: A long-term care policy must be at least guaranteed renewable, meaning the insurer may refuse to renew only for which reason?

The insured's declining health

Nonpayment of premium

The insured reaching age eighty

A change in the insured's occupation

Question 46: Which of the following may a California long-term care policy NOT require as a condition of paying benefits?

Inability to perform activities of daily living

A cognitive impairment

A prior hospital stay

Certification of the need for care

Question 47: California long-term care marketing standards require a free-look period during which the buyer may return the policy for a refund. How long is it?

Thirty days

Ten days

Sixty days

Ninety days

Question 48: Under California law, before an agent may solicit individual consumers for long-term care insurance, the agent must do which of the following?

Sell at least one life policy

Obtain a property license

Reach age sixty-five

Complete the required long-term care training

Question 49: When soliciting long-term care insurance, a California agent must provide a senior prospect with which of the following?

A free Medicare Advantage plan

A guaranteed benefit illustration

Notice of free HICAP counseling

A cash gift

Question 50: In long-term care underwriting, the central consideration is best described as which of the following?

Whether the applicant can perform daily activities

The applicant's credit score

The applicant's marital status

The applicant's former occupation

Congratulations!

You have completed all 5 question sets. Good job!

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