Montana State Life Insurance Practice Exam

What must the monthly LTC report include?

1. Projected interest rates

2. Amount of LTC benefits paid out

3. Policyholder income

4. Insurance agent performance metrics

The correct answer is: Amount of LTC benefits paid out

In the context of long-term care (LTC) insurance, the monthly report is essential for tracking the financial performance and operational aspects of the insurance products being offered. The inclusion of the amount of LTC benefits paid out in the report is vital because it provides insight into the claims being made against the insurance policies, which directly affects the insurer's financial health and risk management strategies. This figure helps the insurer assess how well their product is performing and whether they need to make adjustments to pricing or underwriting criteria based on the claims experience. The other options, while potentially useful in different contexts, do not directly relate to the core operational data needed for managing an LTC insurance portfolio. Projected interest rates pertain more to investment performance than to the immediate operations of LTC benefits. Policyholder income is more relevant for underwriting and eligibility assessments rather than for reporting on current operations. Insurance agent performance metrics, while important for evaluating sales effectiveness and strategies, do not contribute directly to understanding the claims experience or the current disbursement of benefits, making them less critical for inclusion in a monthly LTC report.