Chapter Exam - Disability Income Insurance (LAH_Texas)

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

Which of these statements concerning an Individual Disability Income policy is TRUE?

normally includes an Elimination period

A disability elimination period is best described as a:

time deductible

What does a Guaranteed Insurability rider provide a Disability Income policyowner?

the ability to periodically increase the amount of coverage without evidence of insurability

P received Disability income benefits for 3 months then returns to work. She is able to work one month before her condition returns, leaving her disabled once again. What would the insurance company most likely regard this second period of disability as?

a recurrent disability

Which of the following is the MOST important factor when deciding how much Disability Income coverage an applicant should purchase?

applicant's monthly income

In a Disability Income policy, which of these clauses acts as a deductible?

elimination period

R had received full disability income benefits for 6 months. When he returns to work, he is only able to resume half his normal daily workload. Which provision pays reduced benefits to R while he is not working at full capacity?

residual disability

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 clause

J has a Disability Income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this?

nonoccupational coverage