Chapter 4: Health

Which of the following is the MOST important factor when deciding how much Disability Income coverage an applicant should purchase? Applicant's occupation Applicant's monthly income Applicant's health Applicant's previous disabilities

Applicant's monthly income

K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy would cover her loss of income? Indemnity Major Medical Travel Disability Income

Disability Income

Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this? Guaranteed insurability rider Additional coverage rider Paid-up option rider Extended insurability rider

Guaranteed insurability rider

When an insured has the same disability within a specified time period and the insurance company provides the same benefits without a new waiting period, the second disability is covered under which of the following benefits? Residual Disability Presumptive Disability Recurrent Disability Repeat Disability

Recurrent Disability

When a person returns to work after a period of total disability but cannot earn as much as he or she did before the disability, this situation is called which of the following? Waiver of premium Recurring disability Residual disability Presumptive disability

Residual disability

An individual Disability Income insurance applicant may be required to submit all of the following information EXCEPT medical history gross income occupation spouse's occupation

Spouse's occupation

The provision in a health insurance policy that suspends premiums being paid to the insurer while the insured is disabled is called the.. Probation Period Grace Period Waiver of Premium Elimination Period

Waiver of Premium

When determining the monthly benefit amount for a Disability Income policy, the factor that limits the amount a prospective insured may purchase is... occupation income age medical condition

income

A disability elimination period is best described as a time deductible dollar deductible eligibility period probation period

time deductible

T was insured under an individual Disability Income policy and was severely burned in a fire. As a result, T became totally disabled. The insurer began making monthly benefit payments, but later discovered that the fire was set by T in what was described as arson. What actions will the insurer take? The insurer will rescind the policy, deny the claim, and recover all payments made Due to the policy not being post-claim underwritten, the insurer must continue to pay this claim Claim will be rejected because of this criminal act, but no recovery of payments will be made Claim will be denied but the policy will remain in force without further premium payments due to the insured's total disabiliy

The insurer will rescind the policy, deny the claim, and recover all payments made