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23. The elimination period under Ruth's LTCI policy is 30 days, while Rebecca's policy specifies an elimination period of 180 days. Everything else being equal, what can be expected regarding their respective premiums? O a. Ruth's premium will be higher than Rebecca's. ob. Rebecca's premium will be higher than Ruth's. O C. Rebecca's premium will decline over the term of her policy. od. The length of the elimination period has no bearing on an LTCI policy's premium.

23. The elimination period under Ruth's LTCI policy is 30 days, while Rebecca's policy specifies an elimination period of 180 days. Everything else being equal, what can be expected regarding their respective premiums? O a. Ruth's premium will be higher than Rebecca's. ob. Rebecca's premium will be higher than Ruth's. O C. Rebecca's premium will decline over the term of her policy. od. The length of the elimination period has no bearing on an LTCI policy's premium.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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23. The elimination period under Ruth's LTCI policy is 30 days, while Rebecca's policy specifies an elimination period of 180 days. Everything else being equal, what can be expected regarding their respective premiums? O a. Ruth's premium will be higher than Rebecca's. ob. Rebecca's premium will be higher than Ruth's. OC. Rebecca's premium will decline over the term of her policy. od. The length of the elimination period has no bearing on an LTCI policy's premium. 24. Patricia has become unable to perform several ADLS, but before a determination can be made regarding her qualifications to receive long-term care insurance benefits, the insurer requires that her physician create a written plan of care. What role is Patricia's doctor taking? oa. gatekeeper ob. custodian Oc. responsible party od. fiduciary 25. Amanda and Arnold both have $450,000 in assets, and each purchases a partnership- qualified LTCI policy with a $300,000 maximum benefit. Amanda's partnership program uses the dollar-for-dollar offset method, and Arnold's program uses the total asset approach. Which of the following statements is true? o a. Each will be able to protect their full $450,000 in assets from Medicaid's spend- down requirement. ob. Arnold will be able to protect a greater portion of his assets than Amanda. OC. Amanda will be able to add the cost of her LTCI policy premiums to the dollar amount of assets that will be protected from Medicaid's spend-down requirement. od. Amanda will be able to protect a greater portion of her assets than Arnold.
Transcribed Image Text:23. The elimination period under Ruth's LTCI policy is 30 days, while Rebecca's policy specifies an elimination period of 180 days. Everything else being equal, what can be expected regarding their respective premiums? O a. Ruth's premium will be higher than Rebecca's. ob. Rebecca's premium will be higher than Ruth's. OC. Rebecca's premium will decline over the term of her policy. od. The length of the elimination period has no bearing on an LTCI policy's premium. 24. Patricia has become unable to perform several ADLS, but before a determination can be made regarding her qualifications to receive long-term care insurance benefits, the insurer requires that her physician create a written plan of care. What role is Patricia's doctor taking? oa. gatekeeper ob. custodian Oc. responsible party od. fiduciary 25. Amanda and Arnold both have $450,000 in assets, and each purchases a partnership- qualified LTCI policy with a $300,000 maximum benefit. Amanda's partnership program uses the dollar-for-dollar offset method, and Arnold's program uses the total asset approach. Which of the following statements is true? o a. Each will be able to protect their full $450,000 in assets from Medicaid's spend- down requirement. ob. Arnold will be able to protect a greater portion of his assets than Amanda. OC. Amanda will be able to add the cost of her LTCI policy premiums to the dollar amount of assets that will be protected from Medicaid's spend-down requirement. od. Amanda will be able to protect a greater portion of her assets than Arnold.
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