Free CLTC Practice Questions

Question 1

During a family meeting, a couple describes their daughter as their future caregiver. She agrees to coordinate appointments and supervise hired providers, but she will not leave her job or provide hands-on care. The couple has funds available for paid assistance. Before discussing insurance amounts, which change would make their care plan more workable?

Accepted Answer

Confirm hands-on care arrangements while retaining the daughter's agreed coordination role.

Answer

Increase the projected insurance benefit to replace the daughter's earnings if she eventually leaves work.

Answer

Have the daughter accept temporary responsibility for personal care until an insurance claim is approved.

Answer

Defer assigning personal-care responsibilities until a future assessment establishes the exact services needed.

Question 2

A functional assessment records the following: hands-on help is necessary for bathing, fastening and removing clothing, and moving between a bed and a chair. The client independently brings food to the mouth, uses the toilet, and manages bowel and bladder care. A daughter prepares meals and organizes medications. How many of the six ADLs used in tax-qualified LTC insurance are documented as requiring assistance?

Accepted Answer

Three: bathing, dressing, and transferring.

Answer

Four: bathing, dressing, transferring, and eating.

Answer

Five: bathing, dressing, transferring, meal preparation, and medication management.

Answer

Two: bathing and dressing; bed-to-chair movement is an instrumental activity.

Question 3

An Original Medicare beneficiary entered a Medicare-certified skilled nursing facility after a qualifying hospital stay and still has benefit days available. Her progress has plateaued, but the care team documents that daily skilled services remain necessary to maintain function and prevent deterioration. A family member is told that Medicare must stop paying because she is no longer improving. Which finding is decisive in evaluating that explanation?

Accepted Answer

The continuing need for daily skilled services to maintain her condition.

Answer

The number of unused days within the maximum SNF benefit period.

Answer

The likelihood that further treatment will restore her former level of independence.

Answer

The family's inability to arrange equivalent personal assistance in her home.

Question 4

A state has verified that a client's LTC policy qualifies for its standard dollar-for-dollar Partnership program. The policy began with a $300,000 benefit pool and has paid $85,000 in qualifying benefits. The client now asks how the policy affects a Medicaid application. Which description correctly identifies the insurance-derived resource disregard?

Accepted Answer

$85,000 is disregarded; the other Medicaid eligibility requirements still apply.

Answer

$300,000 is disregarded because the original benefit pool determines the protection purchased.

Answer

$215,000 is disregarded because the unused insurance benefits represent the remaining protection.

Answer

$85,000 is disregarded, and Partnership participation removes the separate Medicaid income test.

Question 5

A man with cognitive impairment needs continuous supervision while his wife is away at work. Their assessed home arrangement is safe when she is present, including evenings and overnight; he does not need skilled nursing. They want him to continue living at home. All four services below are available. Which one fills the identified gap without changing his residence?

Accepted Answer

An adult day program, including supervised transportation, that covers his wife's full absence.

Answer

Morning and afternoon home-care visits, with telephone check-ins between visits.

Answer

Permanent placement in a memory-care residence with around-the-clock staffing.

Answer

Intermittent skilled nursing visits combined with daily meal delivery at home.

Question 6

On the first day of a client's impairment, a licensed healthcare practitioner certifies that substantial help with three ADLs is expected to be necessary for six months. Her tax-qualified LTC policy has a 30-calendar-day elimination period, counting each qualifying day whether or not paid care is received. It is now day 42, and all other claim requirements are satisfied. Which statement correctly addresses payment timing?

Accepted Answer

Eligible services after the completed 30-day elimination period can be payable.

Answer

Payment can begin only after she accumulates 30 days of paid professional care.

Answer

Payment must wait until 90 actual days of ADL impairment have passed.

Answer

The six-month certification makes eligible services payable retroactively from the first day.

Question 7

A couple receives $6,000 in monthly after-tax income. The spouse remaining at home needs $4,000 each month for essential living expenses. The other spouse's care costs $9,000 monthly, and an in-force LTC policy is currently paying $4,000 monthly toward that bill. They have a separate $72,000 liquid care reserve. Assume constant amounts, no investment return, no other reserve withdrawals, and insurance payments throughout the period being evaluated. How long can the reserve cover the remaining care shortfall?

Accepted Answer

24 months.

Answer

8 months.

Answer

14.4 months.

Answer

No reserve drawdown is needed.

Question 8

An older client with significant hearing loss asks for written policy comparisons. After reading them, she accurately explains the costs, exclusions, and trade-offs and asks to make her own decision. Her daughter requests that the adviser instead obtain all instructions from her; she has no financial power of attorney, and the client has not authorized this arrangement. How should the adviser conduct the remainder of the meeting?

Accepted Answer

Continue directly with the client using accessible written information and her own instructions.

Answer

Suspend the discussion until a clinician certifies capacity because a communication barrier is present.

Answer

Let the daughter select the coverage, then obtain the client's signature to confirm the choice.

Answer

Require both women to approve the recommendation because the daughter may later provide care.

Question 9

While preparing an institutional Medicaid application governed by a 60-month transfer look-back, a client discloses cash gifts to adult children made 18 months earlier to reduce countable assets. No compensation was received, and no transfer exception applies. Each gift was within the federal annual gift-tax exclusion. What does that tax treatment establish about the Medicaid consequences?

Accepted Answer

The gift-tax exclusion does not shield the gifts from Medicaid transfer-penalty rules.

Answer

The gifts escape transfer penalties because they did not produce taxable gifts.

Answer

Each gift produces a 60-month penalty because it falls within that review period.

Answer

The gifts are excluded because they preceded both nursing-home admission and the Medicaid application.

Question 10

Compare two alternative expense-reimbursement LTC policies for the same care episode. Policy A pays up to $200 per covered service day; unused daily amounts cannot be carried to another day. Policy B pays up to $6,000 per month with no daily cap. In one month, the only eligible charges are $140, $280, and $340 on three separate days. Both elimination periods are satisfied and both pools are sufficient. Evaluated separately, how much would each policy reimburse?

Accepted Answer

Policy A: $540; Policy B: $760.

Answer

Policy A: $760; Policy B: $760.

Answer

Policy A: $600; Policy B: $760.

Answer

Policy A: $540; Policy B: $600.

Free CLTC Practice Questions

Domain 1: Extended Care: Family vs. Statistics

Question 1

Domain 2: Extended Care Services

Question 2

Domain 3: Who Pays for Extended Care

Question 3

Question 4

Domain 4: Medicaid v. Long-Term Care Insurance

Question 5

Question 6

Domain 5: Proper Implementation of Long-Term Care Insurance

Question 7

Question 8

Question 9

Domain 6: The Ethical Promotion of Long-Term Care Insurance

Question 10

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