All of the Following Statements About Long-Term Care Insurance Are

question 35

Multiple Choice

All of the following statements about long-term care insurance are true EXCEPT

• A)Premiums can be reduced by electing shorter elimination periods.
• B)A common benefits trigger is the inability to perform a certain number of activities of daily living.
• C)Protection against inflation is usually made available as an optional benefit.
• D)Policies currently sold are guaranteed renewable.

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Definitions:

Resource Prices

Costs associated with the inputs used in the production of goods and services, such as materials and labor.

Economic Profits

represent the difference between a firm's total revenues and its total costs, including both explicit and implicit costs, reflecting excess earnings over opportunity costs.

Purely Competitive

Describes a market structure characterized by many sellers and buyers, where no single entity has the power to influence the market price.

Positive Economic Profits

Profits that exceed the opportunity costs of a production enterprise, indicating a more favorable outcome than alternative investments.