Ace the Illinois Health Insurance Exam 2025 – Insure Your Success Today!

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Under what circumstances can rates increase in a Long-Term Care (LTC) policy?

Based on individual policyholder health status

As a response to overall market trends

Through cancellation of the policy by the insurer

By adjusting rates for broad policy classifications

Rates for Long-Term Care (LTC) policies can increase by adjusting rates for broad policy classifications. This means that rate adjustments are typically based on the entire group of policyholders who share similar characteristics, rather than an individual policyholder's health status. The insurer may increase rates for an entire category of policyholders to reflect changing costs, claims experience, or other factors that impact the overall risk pool. This practice helps ensure that the premiums charged remain appropriate for the level of coverage provided. Additionally, increasing rates in response to overall market trends or canceling policies are not typical circumstances for rate increases in LTC policies.

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