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a. A participating whole life policy pays dividends annually. Dividends paid by a participating policy may be added to the face value, increase the cash surrender value or be paid to the policy owner. Count dividends even if the total face value is equal to or less than $10,000. Verify how dividends are paid. Refer to XII.I.2. below. b. Universal Life Universal life policies are a type of participating whole life policy. D. Long Term Care Partnership policy A qualified Long Term Care Partnership policy provides the Medicaid a/b with a resource disregard up to the amount of benefits paid out by the policy as of the date of application for LTC Medicaid or CAP. The resource protection at estate recovery is equal to the amount paid out from the qualified Long Term Care Partnership program policy as of the date of application. If the client has a community spouse, first apply the Community Spouse Resource allowance. See MA-2231, Community Spouse Resource Protection for instructions. If after completing the CRSA the client’s resources are above the limit, follow the steps below for the client with a qualified Long Term Care Partnership policy. To identify that a long term care policy is a qualified Long Term Care Partnership policy, the policy must be accompanied by a Partnership Disclosure Notice which explains the details of the Partnership program, resource disregard and protection at estate recovery. 1. The qualified Long Term Care Partnership Policy includes: a. An effective date of January 1, 2011 or later, unless the policy was purchased in another state. b. The policy states that if the insured is already a beneficiary of long term care Medicaid, the policy will not allow a resource disregard and protection at estate recovery and, c. A statement that the purchase of a partnership policy does not guarantee qualification for Medicaid. 2. Only the available and countable assets owned by the individual Medicaid a/b and his share of jointly owned assets may be considered when applying the resource disregard. Only the assets of the individual may also be protected at estate recovery. 3. The North Carolina Medicaid program may allow a resource disregard and protection at estate recovery for an individual who purchased a qualified Long Term Care Partnership policy in another state which has a reciprocal agreement with the state of North Carolina. To determine if the state and North Carolina have a reciprocity agreement, visit the website State Partnership for Long Term Care. 88