AD Banker Comprehensive Practice Exam

An individual long-term care insurance policy may not be terminated for nonpayment of premium unless the insurer has given notice to the insured at least _____ days before termination.

1. 30

2. 60

3. 45

4. 20

The correct answer is: 30

Under long-term care insurance policies, insurers are required to provide a minimum amount of notice before terminating a policy for nonpayment of premiums. This is a consumer protection measure that ensures that policyholders have the opportunity to rectify any issues related to their premiums before losing their coverage. The correct requirement is a notice period of at least 30 days. This means that if a premium is unpaid, the insurer must inform the insured of the impending termination of their policy at least 30 days in advance. This safeguard is designed to prevent sudden loss of coverage, allowing the insured sufficient time to make the necessary payment or to clarify any issues regarding their premium. Other options, such as 60, 45, and 20 days, do not align with the regulatory standard typically set forth for long-term care insurance policies, which makes the 30-day notice the appropriate and legally compliant requirement. This helps promote fairness and protects consumers from being caught off guard by a policy termination.