Indiana State Life and Health Insurance Practice Exam

Long-Term Care policies sold in Indiana may exclude coverage for pre-existing conditions for?

1. 6 Months

2. 8 Months

3. 12 Months

4. 18 Months

The correct answer is: 6 Months

Long-Term Care policies sold in Indiana can exclude coverage for pre-existing conditions for a period of 6 months. This means that if an individual has a medical condition that existed before the purchase of the policy, that specific condition would not be covered for the first 6 months of the policy. This exclusion period is designed to prevent adverse selection, where individuals might otherwise seek coverage for existing health issues without a waiting period. It ensures that the insurance company can manage risk effectively while providing the policyholder with an assurance of coverage for conditions that develop after this initial exclusion period. The 6-month period is one of the standard durations in the industry, allowing for a balance between protecting insurers and providing adequate coverage for policyholders. The other timeframes provided in the choices do not align with the standard practices under Indiana regulations for Long-Term Care insurance.