Module 4

Question 1

Which type of life insurance accumulates a cash value?

a) Permanent Life Insurance
b) Term Life Insurance

Answer 1

a) Permanent Life Insurance

Question 2

True or False? The court determines in the Gaunt case that Gaunt was not covered by the insurer at the time of his death

Answer 2

False. Gaunt WAS covered by the insurer at the time of his death and the insurer is held responsible for any confusion resulting from a delayed approval date.

Question 3

True or False? In the Ryan v. Tickle case concludes that the wife does have standing to challenge lack of insurable interest.

Answer 3

False. In this case, the court concludes that only the insurer (not the wife) has standing to raise lack of insurable interest.

Question 4

The typical incontestability clause is ________ in duration.

a) 6 months
b) 1 year
c) 2 years
d) 5 years

Answer 4

c) 2 years

Question 5

One goal of the Affordable Care Act (ACA) is to make insurance coverage for employers more affordable. True or False?

Answer 5

False. The goal of the ACA is to make insurance coverage for individuals (for example, individuals who are self-employed) more affordable

Question 6

The majority of Americans get their health insurance through:

a) self-funded employer plans
b) Government plans
c) Individual Market

Answer 6

a) self-funded employer plans

Question 7

The Employee Income Retirement Security Act of 1974 (ERISA) remains the operative regulatory statute for self-funded employer plans. True or False?

Answer 7

True. ERISA remains the operative regulatory statute for self-funded employer plans.

Question 8

Many states have rejected the Pustilnik approach and found that the insured must first be “made whole” before the insurer can subrogate. True or False?

Answer 8

True. Many states have rejected the Pustilinik approach and found that the insured must first be “made whole” before the insurer can subrogate.

Question 9

Check all that apply. Which of the below are the 3 major sources of disability insurance?

a) SSDI
b) Worker’s Compensation
c) Private First Party
d) Medicare

Answer 9

a) SSDI
b) Worker’s Compensation
c) Private First Party

Question 10

Short Term (ST) coverage typically protects against a disability expected to last for ________ or less.

a) 3 months
b) 6 months
c) 1 year
d) 2 years

Answer 10

b) 6 months (or less)

Question 11

The issue in the Heller v. Equitable Life Assurance case is “is a salary comparison an appropriate part of the interpretation of a disability policy?” True or False?

Answer 11

False. This is the issue in the Mossa case.