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Example 2: A member has a life insurance policy with a face value of $20,000. The policy was transferred over to the funeral home and created an irrevocable funeral agreement which did not designate the State or the estate to receive any remaining funds after all services have been paid. Because the life insurance was transferred to an irrevocable funeral agreement, then it is no longer an available resource. However, the funeral agreement did not designate the State or estate to receive remaining funds after the services have been paid, therefore a violative transfer has occurred. A transfer of property penalty should be imposed. Before the CSV over $1,500 can be exempt, the worker must verify the face value, the owner, the beneficiary, and the insured. Policies which ensure the non-recipient spouse or parent of the applicant/recipient cannot be exempt under this provision. 2615.25.05.20 LIFE INSURANCE EXEMPTION (MED 4) The CSV of life insurance is exempt when the total face value (FV) of all policies (except term policies) does not exceed $1,500, regardless of the beneficiary designation. If the total face value exceeds $1,500, the CSV is a countable resource. Both spouses are entitled to have the CSV of life insurance exempted under this provision, whether or not they are both applicants/recipients. 2615.25.10 INDEMNITY HEALTH INSURANCE, VA AID AND ATTENDANCE PAYMENTS, AND CASUALTY INSURANCE Payments made to covered persons under an indemnity health insurance plan intended to cover costs associated with health care costs incurred by the applicant/recipient are exempt as resources the month the payments are received and the following month. Any payments from the insurance policy that are not spent on health services during the exempted timeframe are deemed countable once this timeframe has passed. This resource exclusion applies to income received for VA Aid and Attendance payments made to the applicant/recipient. The proceeds (including interest earned) of casualty insurance received as a result of damage, destruction, loss, or theft of exempt real or personal property are not to be counted as a resource if the applicant/recipient demonstrates that the proceeds are being used to repair or replace the property. For MED 1 and 4 only, the resource is exempt for a period not to exceed nine months from the date of receipt. If the proceeds from casualty insurance are retained by the applicant/recipient or his spouse or parent after the nine-month period, they must be counted as a resource.32 2615.25.15 LONG TERM CARE PROGRAM-RESOURCE DISREGARD (MED 1, 4) This section applies to all MED 1. Within MED 4, it applies only to QMB (MA L).