Indiana State Life and Health Insurance Practice Exam

When applying for long-term care insurance, what information may insurers request from applicants?

1. Income statements only

2. Pre-existing health conditions

3. Employment history

4. Family medical history only

The correct answer is: Pre-existing health conditions

Insurers typically request information about pre-existing health conditions when applying for long-term care insurance because this information allows them to assess the risk associated with insuring an applicant. Long-term care insurance is designed to cover services that help people with chronic illnesses or disabilities who cannot care for themselves. A comprehensive understanding of an applicant’s health status, including any pre-existing conditions, helps insurers determine eligibility, coverage options, and premiums. While income statements, employment history, and family medical history could be relevant in some contexts, they do not directly pertain to the immediate assessment of the applicant's current health needs and risks related to long-term care. The focus on health conditions is critical because it influences both the likelihood of needing care and the duration of that care, which are central considerations for any insurer when deciding how to proceed with an application for long-term care insurance.