chapter 16 - disability income insurance

what is considered for disability income insurance?

-education -training -experience

how much does a flat amount benefit pay in terms of a full disability benefit?

50% of the full disability benefit

Allen has a disability income policy with 2500$ monthly benefit and a 30 day elimination period. he is unable to work 90 days following an automobile accident. what will the policy pay? -0$ -2500$ -5000$ -7500$

5000$

the elimination period in a disability income policy serves the same purpose as -a deductible -coinsurance -an elective indemnity -waiver of premium

a deductible

what is the residual disability benefit usually based on?

a percentage of the total disability benefit for when the insured is working but unable to perform some of the duties of his/her occupation

what is elective indemnity coverage?

a short term disability income policy

what is the result that require the result of the injury to be unexpected and accidental? -accidental means provision -accidental bodily injury provision (or results provision)

accidental bodily injury provision

what is the cause of injury that must have been unexpected and accidental? -accidental means provision -accidental bodily injury provision (or results provision)

accidental means provision

what is the type of occupation definition where the insured is unable to perform any occupation for which he is reasonably suited by education, training, or experience? -any occupation -own occupation

any occupation

the period of time that disability benefits will be paid to the disabled insured -elimination period -benefit period -delayed period -recurrent period

benefit period

which of the following is a characteristic of the disability elimination period? -benefits are optionally payable -benefits are conditionally payable -benefits are undconditionally payable -benefits are not payable

benefits are not payable

what is a cost of living adjustment COLA rider?

cost of living adjustment that provides for monthly or weekly benefit payable under a disability policy due to changes in CPI

Manuel is considered to be a disabled person as defined by the Americans with Disabilities Act (ADA). As such, he is unable to perform any of the following life activities EXCEPT -communicating -breathing -driving -hearing

driving

the time immediately following the start of a disability when benefits are not payable -elimination period -benefit period -delayed period -recurrent period

elimination period

which disability benefit payable method specifies a flat income benefit amount that will be paid if the insured becomes totally disabled? -percent of earnings approach -flat amount method

flat amount method

what is the change of occupation provision?

if injured under a more hazardous occupation than stated in the policy then the benefit will be reduced and vice versa for a less hazardous occupation

which of the following could lower the premium of a proposed disability income policy? -increase in the elimination period -decreasing the elimination period -increasing the benefit period -selecting an "own occupation" clause instead of an "any occupation" clause

increase in the elimination period

which of the following statements regarding group disability income insurance is true? -it pays 100% or more of an insured's income in the event of disability -it provides benefits for nonoccupational illnesses and injuries -it is generally more expensive than individual policies -it usually pays for occupation related disabilities

it provides benefits for nonoccupational illnesses and injuries

what is the type of occupation definition where the insured is unable to perform the insured's current occupation because of an accident or sickness? -any occupation -own occupation

own occupation

which type of occupation is more advantageous to the insurer? -any occupation -own occupation

own occupation because it is more expensive and difficult to qualify for

if Helen has a disability income policy with an own occupation definition is severely injured. she is unable to work for 4 motnhs during which her disability income policy pays full benefit. after 4 months she can return to work, but only on a part time basis earning less. what would she need in order to make the same amount of money in order make the same amount of money prior to the injury? -partial disability provision -flat amount -presumptive disability provision

partial disability provision

which disability benefit payable method determines the benefit using a percentage of the insured's pre-disability earnings and consider other sources of disability income? -percent of earnings approach -flat amount method

percent of earnings approach

Dyan is considered partially disabled by her insurance company. which of the following best describes her situation? -she is working part time and receiving lost income under her long term disability benefit -she has lost hearing in one ear because of an accident on the job -she is unable to work and receiving workers' compensation -her employer pays half of her disability benefit

she is working part time and receiving lost income under her long term disability benefit

what is an insured's income limits?

the amount of monthly benefit that the insured may select in a disability income policy

what are residual disability income insurance payments based on? -a flat benefit amount stated in the policy -50% of the full disability amount -the amount of the insured's income is reduced by the disability -the insured must be totally disabled

the amount of the insured's income is reduced by the disability

finish the sentence the longer the benefit period the higher the cost of the policy (usually 2+ years) ______ -the lower the cost of the policy -the higher the cost of the policy

the higher the cost of the policy

an individual covered under a disability income policy may be eligible for a partial disability benefit if -the insured can perform some of their job activities on a part time basis -the insured cannot perform any of their job activities -the cause of disability was from an accident only -the insured is enrolled in a rehab program

the insured can perform some of their job activities on a part time basis

Kim is insured under a disability income insurance policy with an "own occupation" clause. she was recently injured in an automobile accident and can no longer perform the tasks of her job. kim is now considered to be -short term disabled -temporarily disabled -partially disabled -totally disabled

totally disabled

what is the residual amount benefit based on?

when the full disability payment have been paid and the insured is back to work with a reduced workload and the portion of income is lost due to partial disability