Long Term Care Certification Practice Test

Which statement regarding the replacement of long-term care coverage is correct?

1. The new policy must have a new waiting period

2. Replacement policies may not include the same benefits

3. Policies can only be replaced with the same insurer

4. The replacement policy may not contain a new waiting period if that has already been satisfied in the existing policy

The correct answer is: The replacement policy may not contain a new waiting period if that has already been satisfied in the existing policy

The statement that the replacement policy may not contain a new waiting period if that has already been satisfied in the existing policy is accurate because it aligns with the regulations surrounding long-term care insurance. When an individual replaces their long-term care policy, they are typically looking to maintain continuity of coverage. If the insured has already fulfilled the waiting period in their current policy, that waiting period should ideally not be imposed again in the new policy. This helps ensure that the insured can access benefits immediately without unnecessary delays or redundancy in waiting periods, providing a seamless transition and protecting the insured’s interests. This reflects the understanding that replacements of long-term care policies should be beneficial for the policyholder, maintaining or enhancing their coverage without adding extra burdens that would not have been present had they not replaced the original policy.