Long-Term Care Policies

question 48

Multiple Choice

Long-term care policies:

• A) are not standardized
• B) are purchased by more than 70% of U.S. senior citizens
• C) provide coverage that is normally triggered by an inability of the insured to understand the ramifications of their actions
• D) are legal in only 38 states

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Definitions:

Lockbox System

A lockbox system is a service offered by banks to companies for the receipt of payment from customers, under which the payments are directed to a special post office box rather than to the company.

Daily Interest Rate

A method of calculating interest where the rate is applied to the principal on a daily basis.

Miller-Orr Model

A financial model used for managing cash balances and optimizing the levels of cash holding based on specified upper and lower limits.