Life & Health Insurance Practice Exam 2025 - Free Practice Questions and Study Guide

In the context of long-term care (LTC) policies, it is essential to ensure that policyholders are adequately informed and supported, particularly regarding sensitive matters like lapse or termination of coverage. When a notice is issued before a policy lapses or is terminated, it is required that at least one additional person be designated in writing. This designation serves as an important step to provide the insured with a safety net, ensuring that someone else—a family member, friend, or caregiver—will be informed of the impending changes to the policy. This individual can then assist the insured in addressing any issues, such as payment of premiums or understanding the ramifications of policy termination.

The importance of designating an additional person lies in the potential complexities surrounding aging individuals and long-term care needs. Policies might lapse due to oversight or misunderstanding, especially if the individual is experiencing health issues or cognitive decline. By having another person involved, it increases the likelihood of timely communication, ensuring the insured is able to maintain coverage and receive necessary benefits.

The other options do not adequately fulfill the requirement of preemptively notifying and involving an additional party in the policy process related to lapsing or termination. A list of medical facilities may not provide direct assistance to the insured; verbal confirmation lacks the necessary