Long Term Care Certification Practice Test

If an employer terminates a group long-term care plan and the insurer converts it, what is likely true about the converted policy?

1. The benefits remain unchanged

2. The employee is covered by another policy at the time of conversion

3. All premiums will increase

4. The policy will cover more than before

The correct answer is: The employee is covered by another policy at the time of conversion

When an employer terminates a group long-term care plan and the insurer converts it, the converted policy typically allows the employee to maintain coverage individually without any requirement to undergo additional medical underwriting. This process is crucial because it ensures that the individual can continue their long-term care coverage with the insurer, despite the change in their employment status. While it is possible for the terms of the coverage to differ in some aspects, such as premiums or benefits, the key fact remains that the employee is indeed transitioning to an individual policy option. Therefore, it is likely that the employee is not covered by another policy at this time, and the focus shifts toward maintaining continuity of care through the converted policy from the group plan. In this context, the other options do not align well with the typical terms surrounding policy conversions. For instance, while premium adjustments can occur with conversions, they are not universally guaranteed to increase for everyone. Similarly, the benefits can remain the same, change, or even offer less coverage than the original group policy, so they cannot be assumed to remain unchanged. Lastly, the notion that the new policy would cover more than before is not guaranteed either; the coverage may indeed be more limited compared to the group policy, depending on the specifics of the conversion