Long Term Care Certification Practice Test

When a group long-term care policy is replaced with a new policy, how is the premium determined regarding the issue age factor?

1. The current age of the insured

2. The individual's age attained at the time of the replacement policy

3. The average age of all insured members in the group

4. The age of the policyholder at the time of original purchase

The correct answer is: The individual's age attained at the time of the replacement policy

The premium for a new group long-term care policy that replaces an existing one is determined by the individual's age attained at the time the replacement policy is issued. This means that when a policyholder transitions to a new policy, the insurer evaluates the current age of the insured to calculate the premium. This process reflects the understanding that the risk associated with the insured changes as they age, and therefore, the premium must correspond to the insured's age at the time of the new policy’s issuance. In this context, other aspects like the current age of the insured, the average age of all insured members, and the age at which the original policy was purchased do not factor directly into determining the premium for a replacement policy. Focusing on the age attained at the time the new policy is issued allows insurance providers to appropriately assess the risk and cost of coverage for that individual at their current life stage.