Long Term Care Certification Practice Test

What is the information that insurers selling long-term care insurance do NOT need to report annually to the Commissioner?

1. Policyholder claims

2. Medical reports of each policy applicant

3. Number of active policies

4. Premium collections

The correct answer is: Medical reports of each policy applicant

Insurers selling long-term care insurance are required to report various types of information to the Commissioner to ensure compliance and transparency in their operations. The reason why the information regarding medical reports of each policy applicant is not necessary to report annually is that such reports are part of the individual underwriting process and contain sensitive personal health information. Privacy regulations and the confidential nature of medical records restrict the sharing of this information on a broad scale. On the other hand, policyholder claims, the number of active policies, and premium collections are critical metrics that inform regulatory oversight and consumer protection. These data points help the Commissioner monitor the health of the insurance market, evaluate the performance of insurers, and manage risks associated with long-term care products. In contrast, the personal medical history of applicants is a private matter that does not need to be shared in this manner.