Long Term Care Certification Practice Test

Which of the following does NOT represent information requested on the Replacement and Lapse Reporting form?

1. Total number of new agents recruited by the insurer for the previous year

2. Total premiums received from policies

3. Number of policies replaced

4. Reason for policy lapses

The correct answer is: Total number of new agents recruited by the insurer for the previous year

The correct response highlights that the total number of new agents recruited by the insurer for the previous year is not relevant information for the Replacement and Lapse Reporting form. This form is specifically designed to capture data related to policy replacements and lapses, which directly affects the policyholders and the insurer's risk management. The form typically focuses on metrics that provide insight into the operational aspects of policy management, such as the number of policies that have been replaced, the reasons for these lapses, and the total premiums associated with the policies. The recruitment of new agents, while important for the overall business strategy of the insurer, does not pertain to the performance or activities concerning existing policies and their status. Thus, the inclusion of agent recruitment statistics on this form is not applicable.