Kentucky Health Insurance Practice Exam

What is typically needed for policyholders when applying for a long-term care insurance policy?

1. A signed waiver of coverage.

2. An assessment of functional capacity.

3. Proof of income.

4. A medical history form only.

The correct answer is: An assessment of functional capacity.

The process of applying for a long-term care insurance policy commonly requires an assessment of functional capacity. This assessment is crucial because it evaluates an individual's ability to perform activities of daily living (ADLs) such as bathing, eating, and dressing, which are key factors in determining the level of care a policyholder may need in the future. Insurers use this evaluation to assess risk and eligibility for coverage, as well as to tailor the policy to suit the individual's potential future needs. While forms like a medical history form may be part of the application process, the functional capacity assessment specifically addresses the practical aspects of the applicant’s health regarding long-term care. This makes it a vital requirement that directly influences the insurance underwriting process. Other elements, like proof of income or waivers of coverage, may sometimes be relevant but are not as fundamental to establishing eligibility for long-term care insurance as the assessment of functional capacity is.