Long Term Care Certification Practice Test

Which of the following is a common feature of long-term care policies?

1. Unilateral cancellation by the insurer

2. Guaranteed renewal as long as premiums are paid

3. Exclusion of pre-existing conditions without exceptions

4. Immediate underwriting without review

The correct answer is: Guaranteed renewal as long as premiums are paid

Guaranteed renewal as long as premiums are paid is a common feature of long-term care policies. This provision ensures that as long as the policyholder continues to pay their premiums, the insurer cannot cancel the policy, regardless of any changes in the policyholder's health. This is particularly important for individuals seeking long-term care coverage, as they often require assurance that their coverage will remain intact, especially as they age or if their health condition deteriorates. This feature provides peace of mind, knowing that they will have access to necessary care without the risk of losing their insurance due to an increase in health issues. Other options, such as unilateral cancellation by the insurer or exclusion of pre-existing conditions, do not reflect the foundational nature of policies designed to protect individuals in long-term care scenarios. Immediate underwriting without review may also compromise the integrity of risk assessment and could lead to adverse selection, which is not typically aligned with the principles of sustainable insurance.