Arkansas Life and Health Insurance Practice Exam

In the state of Arkansas, long-term care insurance policies:

1. Must accept all applicants

2. Must allow policyholders to decrease their benefits as needed

3. Must offer insureds covered under a group insurance policy the opportunity to either continue or convert their coverage

4. Must provide coverage for life

The correct answer is: Must accept all applicants

In the state of Arkansas, long-term care insurance policies must accept all applicants. This requirement ensures that individuals seeking long-term care insurance cannot be denied coverage based on any preexisting conditions or other factors. This rule helps to promote access to long-term care insurance for all residents of Arkansas, regardless of their health status. It is an important consumer protection measure that enhances the availability of long-term care coverage in the state. The other options are incorrect because: - Long-term care insurance policies do not have to allow policyholders to decrease their benefits as needed. Typically, policyholders may have the option to adjust their benefits but are not required to do so. - Long-term care insurance policies are not required to provide coverage for life. Policies may have specific terms, such as coverage up to a certain age or for a certain number of years. - While long-term care insurance policies may offer insureds covered under a group insurance policy the opportunity to continue or convert their coverage, this is not a mandatory requirement as stated in the question.