Chapters - 6 / 7 / 8

Question 1

What is the focus for underwriting PREFUNDED LTCI

Answer 1

Morbidity

Question 2

What is the focus for underwriting IMMEDIATE NEED LTCI

Answer 2

Mortality

Question 3

What indicators are used for establishing Mortality

Answer 3

Degree of health impairment
The ability to undertake ADL’s

Question 4

What additional information may underwriters require for annuities

Answer 4

Postcode underwriting
Lifestyle Underwriting

Question 5

Which policy may require PER / SME / MER reports?

Answer 5

Prefunded LTCI

Question 6

What exam does the NHS use to test memory problems or diagnosing demetia?

Answer 6

Mini Mental State Examinations (MMSE) or ACE-R

Question 7

How is the LTCI triggered?

Answer 7

Unable to perform a number of ADL’s or be mentally (cognitively) impaired

Question 8

Under what act must an applicant take ‘reasonable care not to make a misrepresentation?’

Answer 8

Consumer Insurance (Disclosure and Representation) Act 2012

Question 9

Who is the burden of proof for misrepresentation in the application process (either deliberate or reckless)?

Answer 9

The Insurer

Question 10

How long typically is the deferred period for a pre-funded LTCI

Answer 10

Typically 2 - 3 months

Question 11

What is ‘care management’

Answer 11

Process to ensure that the claimant is receiving the appropriate level and standard of care.

Question 12

Which benefits are excluded from the benefits cap?

Answer 12

Benefits paid for care or disability
PIP / DLA / support element of ESA

Question 13

How do pensions influence benefits

Answer 13

Uncrystallised funds may be used to evaluate income
Taking inclome or lump lums will influence

Question 14

When did someone need to reach State Pension age to receive Savings Credit

Answer 14

6 April 2016

Question 15

How is savings credit calculated?

Answer 15

Weekly savings threshold is subtracted from qualifying weekly income and then x 60%

Question 16

Who receives Guarantee Credit

Answer 16

additional amount paid where there is a disability or caring for others.

Can include free dental

Question 17

What other pension credit may be recieved?

Answer 17

Severe disability / Carer / Housing costs

Question 18

If you go into hospital how long before certain credits cease?

Answer 18

28 days

Question 19

How are savings applied to Pension Credit?

Answer 19

Under £10,000 ignored
Anything above that £1 income per week for every £500
Rounded up to nearest £

Question 20

What income is not taken into account for Pension Credit?

Answer 20

Attendance allowance
PIP / DLA
Contribution based Employment and Support Allowance

Question 21

What is employment and support allowance (ESA)?

Answer 21

help people with disability and illness to get back to work. Will eventually be replaced by Universal Credit

Question 22

What are the two elements of ESA

Answer 22

Contribution based (NI)
Income related (household income of less than £16k)

Question 23

Is ESA taxable?

Answer 23

Contribution based - yes
Income related - no

Question 24

How many hours per week must you care for someone to receive Carer’s Allowance?

Answer 24

35 hours

Question 25

Is Carer's allowance taxable?

Answer 25

Yes

Question 26

What is the limit for Carers earnings?

Answer 26

£196 after tax / expenses

Question 27

What NI contribution do you get for Carer's allowance?

Answer 27

Class 1

Question 28

Who is paid Attendance allowance?

Answer 28

Payable to disabled people who need personal care such as eating, washing, going to the toilet Must be over State Pension age and suffering from a disability for six months or more

Question 29

Is attendance allowance taxed and means tested?

Answer 29

No tax Not means tested

Question 30

How long do you need to be in a care home to cease Attendance Allowance, but who is the exception?

Answer 30

28 days People who self fund residential care

Question 31

Who is Personal Independence Payment for?

Answer 31

Disabled / Need supervision (daily living component) and available to those between 16 - State Pension age Suffering for 3 months or more Expected to be disabled for more than 9 months

Question 32

What is the additional componesnt of PIP?

Answer 32

Mobility Component

Question 33

What is PIP replacing?

Answer 33

DLA

Question 34

How is PIP taxed?

Answer 34

Tax free

Question 35

When is PIP suspeended?

Answer 35

If entering hospital for more than four weeks

Question 36

Who can still apply for DLA?

Answer 36

Children under 16 years old Must be disabled for 6 months

Question 37

What date was Basic State Pension cut off

Answer 37

6 April 2016

Question 38

What are the intestacy rules for spouse and children?

Answer 38

£322,000 + half of the estate for the spouse.

Question 39

Three rules for a Will

Answer 39

Writing / Signature / Attestation

Question 40

Are there implications for deed of variation with LTC?

Answer 40

Yes, could fall fowl of deliberate asset deprevation

Question 41

Who has the authority to execute a will on behalf of a person lacking mental capacity and who usually enacts it?

Answer 41

Court of Protection Official Solicitor

Question 42

How long are benefits deferred from an Immediate needs annuity

Answer 42

30 days

Question 43

Max facilities grant in wales

Answer 43

£36,000