State RegulationsIL specificDifficulty 2/5
Which of the following best describes long-term care insurance as regulated in Illinois?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Long-term care insurance is designed to pay for extended care when an insured cannot function independently — including nursing facility care and home or community-based care — rather than covering ordinary medical bills or replacing income. In Illinois, these policies are a distinct regulated category under 215 ILCS 5/351A-1 and 50 Ill. Adm. Code 2012, with the Illinois Department of Insurance overseeing their standards and marketing.
Why the other options are wrong
- A) Paying Medicare premiums is not LTC coverage; a Medicare supplement fills gaps in Medicare benefits, and LTC pays for extended care services.
- B) Disability income replaces lost wages from sickness or injury; LTC pays for care services, which is a different product governed by 215 ILCS 5/351A-1.
- D) Ordinary major medical covering physician and hospital bills is not long-term care insurance; LTC addresses extended custodial and care needs.
Memory hook
LTC pays for the care you need when you can't care for yourself.