Chapter exam- disability income

In a disability income policy, which of these clauses acts as a deductible

Elimination period

M becomes disabled and is unable to work for six months. M dies soon after from complications arising from this disability. M has a Disability Income policy that pays $2,000 a month. Which of the following statements BEST describes what is owed to her estate?

Earned, but unpaid benefits

A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy. What rider would the physician add if he wants the ability to increase his policy benefit as his practice and income grow?

Guaranteed Insurability Option rider

Which of the following actions may not be taken by an insurance company to insure a substandard applicant for disability income coverage

Lengthen the contestability period

T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled, what can he likely expect?

Less than $5,000 per month benefit regardless of the cause

X owns a Disability Income policy. X recently suffered a disability which was due to the same cause as a previous disability. These disabilities both occurred over a four-month span. Which of the following provisions allows X's second disability to be covered without a new elimination period?

Recurrent Disability

D is an architect receiving Disability Income benefits who is not able to return to work full time, but can work on a part-time basis. Which of these features would allow D to continue receiving benefits?

Residual Benefit clause

What is the elimination period of an individual disability policy?

Time period a disabled person must wait before benefits are paid

Disability policies do NOT normally pay for disabilities arising from which of the following

War. Disability policies do NOT normally pay for disabilities arising from an act of war.

Non-occupational disability coverage is designed for

employees who suffer non-work related disabilities, since work-related disabilities are covered by Workers' Compensation

With Disability Income insurance, an insurance company may limit the monthly benefit amount a prospective policy holder may obtain because of the insured's

gross income at the time of purchase

When determining the monthly benefit amount for disability income policy, the factor that limits the amount a prospective insured may purchase is

income

A disability elimination period is best described as a

time deductible