Deron is a typical 67-year-old retiree. Consequently, his primary source of income is most likely

A) welfare

B) Social Security

C) savings

D) pensions

Which of the following explanations would be the most accurate way for you to explain the free-look period to a prospect?

A) If you are not satisfied with the policy, you can return it during the free-look period for a portion of the premium.

B) If you are not satisfied with your first claim experience, a significant percentage of the premiums paid will be returned to you.

C) If for any reason, you are not satisfied with the policy, you can return it during the free-look period for a full refund of premium.

D) The free-look period lets you examine the policy for as long as you want. If you're ready and satisfied with the policy, just inform the insurance company in writing to initiate the contract.

During his sales presentation, a long-term care insurance agent can identify a prospect's needs by

A) accurately describing the proposed policy

B) showing the client a slide show about long-term care

C) talking about clients of the same age as the prospect

D) asking questions

Premiums for tax-qualified LTC policies are tax-deductible only to the extent that the individual's unreimbursed medical expenses, including the premiums, exceed what percentage of the individual's adjusted gross income?

A) 5%

B) 2%

C) 15%

D) 10%

The daily benefit amount on Mr. Costello's per diem contract

A) is determined by the insurer

B) is paid regardless of actual charges

C) must be coordinated with Medicare to be considered a tax-qualified plan

D) reflects actual charges