ch 10

If a disabled worker is eligible for a Social Security disability benefits, his or her spouse and children may each also be eligible for a benefit in the amount of ____% of the disabled worker's benefit.

0 25 50 100

The Age Discrimination in Employment Act (ADEA) affects both the short- and long-term group disability benefits for people employed after age _______.

55 60 62 65

Between the ages of 19 and 65, a worker in America is more likely to be disabled rather than die. This is a comparison of:

Adverse selection to Normal selection Adverse selection to Mortality Adverse Selection to Morbidity Morbidity to Mortality

Which of the following statements is true regarding group short term disability benefits:

Benefits are payable to age 65 Benefits payable can be up to 100% of loss of income The elimination period is 13, 26, or 52 weeks Payments are made on a quarterly basis

What type of disability income insurance pays a lump sum enabling certain businesses to cover the cost of purchasing a disabled business owner's interest in the business?

Business overhead expense Key employee Buy-sell Reducing term

All of the following are possible business uses of Disability Income Insurance, except:

Buy-Sell Key Employee Insurance Workers' Compensation Business Overhead Expense

To reduce the risk of insuring a substandard disability applicant, an insurer may take all of the following actions, except:

Charge additional premium Increase the elimination period Reduce the amount of benefit Remove all of the exclusion riders

Which of the following is needed to qualify for a Social Security Disability Benefit?

Have less than $1,000 in assets Be either currently or fully insured Fulfill a 4-month waiting period, and have paid into Social Security Be age 60, widowed, and have one dependent

Which optional disability income insurance rider waives the elimination period if the insured is hospitalized and pays only when the insured is being treated as an inpatient.

Hospital confinement Impairment Non-disabling injury Cost-of-living

Group Disability Income is usually offered only on a nonoccupational basis, which will not cover work-related disabilities, because:

Most individuals have their own disability income policy The insurer may reduce its financial obligation this way Work related injuries are normally covered under Workers' Compensation Damages for work-related injuries are determined in court

Most group Disability Income contracts are offered on a(n):

Nonoccupational basis Occupational basis Contributory basis Noncontributory basis

In Disability Income underwriting, the single most important rating factor from an underwriting standpoint is the applicant's:

Occupation Health Gender Finances

Ole Olson owns a Business Overhead Expense Policy whereby if he should become disabled, the policy will continue to cover most business expenses in his absence. The policy would cover all of the following, except:

Ole's office rent Ole's employee payroll Ole's utility bills Ole's personal lost income

To be eligible for social security disability the insured worker must be:

Paralyzed Fully insured Partially disabled Eligible for Workers' Compensation

The purpose of the Social Insurance Supplement rider is to:

Pay the medical expenses that are related to an injury that does not result in total disability Provide benefits in case an insured is declined Social Security disability benefits Waives the elimination period if insured is hospitalized during the period of elimination, but only pays when being treated as an inpatient Provide a refund of 80% of premiums paid in to that point, less any dollar amounts paid out in claims

Under what provision will a disability policy provide benefits if the insured is totally disabled because of donating an organ to another individual?

Permanent Disability Transplant Residual Disability Total Disability

Steve Borden, a kindergarten teacher, was in a boating accident and lost both legs. Although he will continue to teach, his disability policy pays full benefits because of this provision:

Presumptive Disability Total Disability Partial Disability Residual Disability

Penelope received benefits from her disability policy and went back to work. After 30 days she found she was not able to work and began to immediately receive her disability payments. Which of following provisions made this possible?

Recurrent Disability Provision Residual Disability Provision Presumptive Disability Provision Second Injury Provision

Under the Coordination of Benefits provision, if an insured is disabled due to a work-related loss, the primary payer is

Social Security disability Group disability Individual disability Workers' Compensation

Which of the following would be considered a presumptive disability?

The loss of a leg below the knee The loss of sight in an eye The loss of the ability to speak The partial loss of hearing in an ear

Which statement is false regarding Social Security Disability benefits?

The waiting period is 5 months To collect disability benefits, an employee must be unable to engage in any kind of gainful work because of a medically determined physical or mental condition that has lasted, or is expected to last, at least 12 months or to result in death Qualification for benefits is contingent only upon the employee's having 45 work credits and being unable to perform his or her usual job The benefit for a qualifying disabled worker is a percentage of the PIA

All of the following are false statements regarding group disability plans, except:

There is individual medical underwriting The plans usually cover work-related disabilities The plans are typically written on a non-occupational basis Benefits are not available to individuals employed beyond age 65

Which of the following is a typical benefit period for a group short-term disability benefit?

To age 65 5 years 2 years 52 weeks

Which statement is false concerning Social Security disability benefits?

To be fully insured for disability benefits, the employee must be either fully or currently insured under the Social Security system The employee must only be unable to engage in his/her own occupation to be considered disabled Benefits may only start after 5 full calendar months of disability, and are not retroactive to the date of disablement The amount of the benefit is based on the employee's Primary Insurance Amount

Josh is a concert pianist and earns a very good living with his talent. He was in a car accident and broke his arm. His disability is considered:

Total, temporary Total, partial Partial, temporary Temporary only