Long Term Care Certification Practice Test

What method is used to notify the insured of potential future rate increases?

1. A personal phone call

2. A letter or approved form

3. An email notification

4. A public announcement

The correct answer is: A letter or approved form

The appropriate method for notifying the insured about potential future rate increases is through a letter or approved form. This approach ensures that the notification is documented and provides a clear, formal means of communication. Written notifications carry legal significance and can be referenced later if necessary, establishing a record of the information provided to the insured. This method also allows the insured to review the details at their own convenience and retains the necessary information regarding possible changes in their policy, particularly in regards to financial planning and budgeting for their long-term care needs. Other methods, such as personal phone calls or email notifications, can lack the same level of formality and documentation, making them less reliable for important communications regarding policy changes. Public announcements do not provide individual notifications, which makes them unsuitable for addressing the specific concerns of each insured individual.