State RegulationsMA specificDifficulty 2/5
What must Massachusetts long-term care insurers offer with respect to inflation protection under 211 CMR 65.06(1)?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under 211 CMR 65.06(1), part of the Massachusetts Division of Insurance's long-term care benefit standards, insurers must offer an inflation adjustment benefit — a mechanism that grows the policy's benefits over time. Because long-term care is typically purchased decades before it is used, a fixed daily benefit erodes badly against rising care costs; the inflation protection offer exists so applicants can choose coverage that keeps pace. The offer must be made at purchase; it is not a benefit tacked on for people already on claim.
Why the other options are wrong
- A) The opposite is true: the inflation adjustment offer is affirmatively required under 211 CMR 65.06(1).
- B) The offer belongs at the point of sale to every applicant, not only to policyowners already receiving benefits.
- D) A lump sum at issue is not the mechanism the Massachusetts long-term care regulation prescribes; the required offer is a benefit that adjusts upward over time.
Memory hook
Buy LTC young, use it old — inflation protection keeps the benefit from shrinking in between.