Disability Income and Related Insurance
After the elimination period, a totally disabled insured qualified and started receiving benefits from his disability income policy that has a waiver of premium rider. What will most likely happen to the premiums paid into the policy during the elimination period? A Premiums will be retained by the company, but no further premium will be required for the duration of the disability. B Premiums will be prorated. C Premiums will be waived. D Premiums will be refunded.
D
Benefit periods for individual short-term disability policies will usually continue from A 3 months to 3 years. B 6 months to 2 years. C 2 years to age 65. D 1 week to 4 weeks.
B
Certain conditions, such as dismemberment or total and permanent blindness, will automatically qualify the insured for full disability benefits. Which disability policy provision does this describe? A Residual disability B Presumptive disability C Dismemberment disability D Partial disability
B
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
Which of the following disability income policies would have the highest premium? A 15-day waiting period / 5-year benefit period B 15-day waiting period / 10-year benefit period C 30-day waiting period / 10-year benefit period D 30-day waiting period / 5-year benefit period
B
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 Full benefits for 2 years B No benefits C Full benefits D Partial benefits
C
An insured's disability income policy includes an additional monthly benefit rider. For how many years can the insured expect to receive payment from the insurer before Social Security benefits begin? A 5 B 3 C 2 D 1
1
Underwriting for disability insurance is unique due to the type of risk involved. Which of the following situations illustrates this? A A construction worker pays a higher premium and receives a poorer classification of disability. B A stunt person pays a low premium and receives a superior classification of disability. C An attorney pays a higher premium and receives a poorer classification of disability. D A secretary pays a higher premium and receives a superior classification of disability.
A
In a disability policy, the elimination (or waiting) period refers to the period between A Coverage under a disability policy and coverage under Social Security. B During which any specific illness or accident is excluded from coverage. C The first day of disability and the day the insured starts receiving benefits. D The effective date of the policy and the date the first premium is due.
C
In the event of a loss, business overhead insurance will pay for A Salary of the business owner. B Medical bills of the business owner. C Rent. D Loss of profits.
C
Under which of the following disability income plans would the benefits be subject to income tax? A Key person B Partnership buy-out C Group D Individual
C
What is the maximum period that an insurer would pay benefits in accordance with an Additional Monthly Benefit rider? A For the duration of the disability or the contract, depending on which ends first B 1 month C 1 year D 2 years
C
Which of the following is NOT a characteristic of a group long-term disability plan? A The benefit period may be to age 65. B The benefit can be up to 66 and 2/3% of one's monthly income. C The benefit can be up to 50% of one's yearly income. D The elimination period is the same as in the short-term plan's benefit period.
C
In disability income insurance, the time between the onset of an injury or sickness and when benefits begin is known as the A Qualification period. B Enrollment period. C Probationary period. D Elimination period.
D
Which of the following conditions would a disability income policy most likely NOT require in order to qualify for benefits? A The insured must be under a physician's care B The insured must be confined to the house C The insured must provide proof of disability D A specified income status prior to the disability
D
