HEALTH ONLY_Chapter 4- Disability Income and Related Insurance

In disability income insurance, the own occupation definition applies A. During the elimination period B. As long as an individual is unable to work C. For the first 2 years of a disability D. During the waiting period

C. For the first 2 years of a disability

If an insured worker has earned 40 quarters of coverage, the worker's status under Social Security disability is A. Correctly insured B. Permanently insured C. Fully insured D. Partially insured

C. Fully insured

The amount of disability benefits that an insured receives often depends upon the insured's A. Number of children at the time of the application B. Medical history at the time of the application C. Income at the time of the application D. Marital status at the time of the application

C. Income at the time of the application

An insured is involved in a car accident. In addition to general, less serious injuries, he permanently loses the use of his leg and is rendered completely blind. The blindness improves a month later. To what extent will he receive Presumptive Disability benefits? A. Partial benefits B. Full benefits until the blindness lifts C. No benefits D. Full benefits

C. No benefits

A 37-year-old owns a policy with a Guaranteed Insurability Rider. The policyowner would like to increase the benefit amount offered by the policy. What documentation would be required? A. Medical records B. Attending physician's report C. No documentation D. Proof of insurability

C. No documentation

Any occupation disability typically means that an individual is unable to perform the duties of the occupation for which he/she is suited by all of these EXCEPT A. Training B. Experience C. Preference D. Education

C. Preference

Which of the following definitions would make it easier to qualify for total disability benefits? A. The more liberal "any occupation B. The more strict "own occupation" C. The more liberal "own occupation" D. The more strict "any occupation"

C. The more liberal "own occupation"

A brain surgeon has an accident and develops tremors in her right arm. Which disability income policy definition of total disability will cover her for all losses? A. "Own occupation" - more restrictive than other definitions B. "Any occupation" - less restrictive than other definitions C. "Any occupation" - more restrictive than other definitions D. "Own occupation" - less restrictive than other definitions

D. "Own occupation" - less restrictive than other defintions

Disability income coverage specifies that the policy covers the insured if he is unable to perform any job for which he is qualified. In this case, total disability is defined as A. Any occupation - less restrictive than other definitions B. Own occupation - more restrictive than other definitions C. Own occupation - less restrictive than other definitions D. Any occupation - more restrictive than other definitions

D. Any occupation - more restrictive than other definitions

What provision can reduce the disability benefit based upon the insured's current income? A. Waiver of monthly premium B. Pro rata provision C. Rehabilitation benefit D Relation of earnings to insurance

D. Relation of earnings to insurance

In disability income insurance, if an insured is considered disabled if they cannot perform any job they are suited for by prior education, training or experience, they fall under which definition of total disability? A. Any occupation B. Typical C. Statutory D. Own occupation

A. Any occupation

An insured owns a medical expense policy that he purchased for his family. The insured's employer purchased a Group Disability Income policy for the insured and all eligible employees. The insured subsequently suffered an accident on the job that left him unable to work for four months. If the insured receives benefits from his disability income policy, which of the following would be true? A. Benefits received that are attributable to employer contributions are fully taxable to the employee as income B. Premiums the insured paid for his medical expense policy are normally deductible from his income C. Benefits from employer contributions are not taxable D. The insured can deduct his medical expense benefits from his income tax

A. Benefits received that are attributable to employer contributions are fully taxable to the employee as income

When a group disability insurance policy is paid entirely by the employer, benefits paid to disabled employees are A. Taxable income to the employee B. Deductible income to the employee C. Deductible business expense to the employer D. Taxable income to the employer

A. Taxable income to the employee

To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters? A. 4 credits B. 6 credits C. 10 credits D. 40 credits

B. 6 credits

Under a disability income policy, the insurer does not pay a monthly benefit that is equal to the insured's previous income. The reason for paying a benefit amount that is less than the insured's income is to A. Enable the insurer to reduce variable costs B. Prevent overutilization and malingering C. Prevent the insured from obtaining excess insurance D. Enable the insurer to provide affordable coverage

B. Prevent overutilization and malingering

Income replacement contracts agree A. To replace the insured for his/her company, including hiring and training wages B. To replace the insured's income up to a stated percentage if the insured suffers a loss due to a covered accident or sickness C. To replace income if the head of the household is the primary insured, and he/she loses income due to a lay-off D. To cover any accident on the job, but not accidents outside of his/her job

B. To replace the insured's income up to to a stated percentage if the insured suffers a loss due to a covered accident or sickness

An insured is involved in an accident that renders him permanently deaf, although he does not sustain any other major injuries. The insured is still able to perform his current job. To what extent will he receive Presumptive Disability benefits? A. Partial benefits B. Full benefits for 2 years C. No benefits D. Full benefits

D. Full benefits

Which of the following refers to "own occupation" disability? A. Insured is unable to perform duties of any occupation B. Insured business owner is unable to perform the duties of his/her own business C. Insured business owner is unable to perform the duties of any related business D. Insured is unable to perform duties of the occupation for which he/she was educated and trained

D. Insured is unable to perform duties of the occupation for which he/she was educated and trained

In a disability policy, the elimination (or waiting) period refers to the period between A. The effective date of the policy and the date the first premium is due B. Coverage under a disability policy and coverage under Social Security C. During which any specific illness or accident is excluded from coverage D. The first day of disability and the day the insured starts receiving benefits

D. The first day of disability and the day the insured starts receiving benefits

If a policy is rated-up, which of the following is true? A. The premium decreases B. The number of exclusions decreases C. The number of benefits increases D. The premium increases

D. The premium increases