Long-Term Care✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
To control adverse selection, long-term care insurers primarily use which approach?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Health-based underwriting at application — reviewing medical history, age, and cognitive status, often with a phone interview — is the primary defense against LTC adverse selection. Asking no medical questions or guaranteeing everyone would invite the highest-risk applicants and destabilize the risk pool. AH-I.A.15 anchors adverse selection and its control through risk selection.
Why the other options are wrong
- B) Skipping medical questions would maximize adverse selection, the opposite of control.
- C) Guaranteed acceptance without underwriting would attract poor risks and raise rates.
- D) Rate increases respond to past losses; underwriting prevents the losses at the front door.
Memory hook
LTC underwriting is the bouncer: health, age, and cognition checked at the door.