Disability Income

A disability policy that covers illnesses or accidents both on or off the job is called: a. An Occupational Policy b. A Non-occupational Policy c. Recurrent Policy d. Comprehensive Policy

a. An Occupational Policy

The time period the benefits will be paid for each disability is called: a. Benefit Period b. Distance Period c. Elimination Period d. Disability Period

a. Benefit Period

The time between the beginning of a covered disability and the beginning of the benefit payment is called: a. Elimination Period b. Benefit Period c. Limited Period d. Probationary Period

a. Elimination Period

Social Security disability benefits are available to people who are: a. Expected to be disabled for 12 months or longer or the disability will end in death. b. 65 years or older only. c. Disabled for at least 4 months. d. Have earned at least 10 Quarters of Coverage.

a. Expected to be disabled for 12 months or longer or the disability will end in death.

Recurrent disability refers to a. A concept that has sometimes replaced partial disability in terms of determining what benefit will be paid b. A disability that is the same or related to a previous disability and has the same cause c. A disability that confines the insured indoors d. Any disability that is not permanent

b. A disability that is the same or related to a previous disability and has the same cause

The insured's inability to perform the duties of any occupation for which he or she is reasonably qualified by education, training or experience is: a. Own occupation b. Any occupation c. Short term occupation d. Restrictive occupation

b. Any occupation

Which of the following policies would be the least expensive to own? a. Benefits to age 65; 30-day elimination period b. Benefits to age 65; 180-day elimination period c. Benefits to age 65; 60-day elimination period d. Benefits to age 65; 90-day elimination period

b. Benefits to age 65; 180-day elimination period

The disability policy that covers a fixed period of time and provides funds for outstanding debts if an owner of a business is disabled is a. Key Person Disability Insurance b. Business Overhead Expense Insurance c. Disability Buy-Out Coverage d. Reducing Term Disability Coverage

b. Business Overhead Expense Insurance

Short Term Policies are those with benefit periods: a. Less than a year b. Less than 2 years c. Less than 5 years d. Less than 10 years

b. Less than 2 years

If the benefit period is longer, the policy will be: a. Less expensive b. More expensive c. Less liberal d. More restrictive

b. More expensive

Which of the following would qualify for Workers' Compensation Benefits? a. An employee in a car accident while driving to work. b. An employee injured at his/her place of employment after hours and working for his/her own personal use. c. An employee injured while working overtime. d. An employee injured while on a lunch break.

c. An employee injured while working overtime.

Which of the following coverages is considered most liberal from the policyowner's point of view? a. Guaranteed renewable coverage b. Cancelable coverage c. Noncancelable coverage d. Noncancelable and guaranteed renewable coverage

c. Noncancelable coverage

Regarding the waiver of premium provision in a disability policy a. Disability must last six months before the provision can take effect. b. It is automatically found in all policies c. Premiums paid during the elimination period are refunded and future premiums are waived as well. d. It lessens the amount of benefit paid to the insured because they are receiving social security disability.

c. Premiums paid during the elimination period are refunded and future premiums are waived as well.

Mr. Jones normally earns $70,000 annually. After returning to work following a period of disability he can only earn $25,000. The type of disability he would need to cover the difference is: a. Presumptive disability b. Recurrent disability c. Residual disability d. Total disability

c. Residual disability

Most disability income plans promise to pay less than the disabled person's full earnings as a benefit because: a. Every disability is not a total disability b. It avoids paying that portion of earnings that would have normally been paid in taxes, if not disabled. c. A disabled person's living expenses are liable to decline. d. To prevent fraudulent claims

d. To prevent fraudulent claims