Disability Income Insurance

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

income

V is insured under an individual Disability Income policy with a 30-day Elimination period. On July 1, he is involved in an accident and temporarily disabled. He returns to work on December 1. How many months of benefit are payable? 6 months 5 months 4 1/2 months 4 months

4 months

A CEO's personal assistant suffered injuries at home and as a result, was unable to work for four months. Which type of policy will pay a monthly benefit to the personal assistant? disability income major medical key empolyee business overhead expense

disability 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

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? limited coverage workers' compensation coverage occupational coverage nonoccupational coverage

nonoccupational coverage

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

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 unwritten, 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 disability

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

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

time deductible

R becomes disabled and owns an individual Disability Income policy. When is R eligible to receive disability benefits? upon being laid off from employer upon paying a deductible upon being examined by a physician upon satisfying the elimination period requirement

upon satisfying the elimination period requirement

What is the primary factor that determines the benefits paid under a disability income policy? education level wages type of occupation age

wages

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

Disability policies do NOT normally pay for disabilities arising from which of the following? accidents war negligence sickness

war

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 presumptive disability an occupational disability a residual disability a recurrent disability

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 occupation applicant's monthly income applicant's health applicant's previous disabilities

applicant's monthly income

B is a teacher who was injured in a car accident and cannot work. She is now receiving monthly benefits as a result of this accident. Which type of policy does B have? major medical blanket disability income indemnity

disability income

With Disability Income insurance, an insurance company may limit the monthly benefit amount a prospective policy holder may obtain because of the insured's monthly expenditures at the time of disability gross income at the time of purchase gross income at the time of disability occupation at the time of purchase

gross income at the time of purchase

Which of the following actions may NOT be taken by an insurance company to insure a substandard applicant for disability income coverage? increase the premium do not cover the substandard condition limit the type of coverage lengthen the contest-ability period

lengthen the contest-ability period

T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled, what can he likely expect? $5,000 per month benefit $10,000 per month benefit if the cause was accidental more than $5,000 per month benefit if clause was work-related less than $5,000 per month benefit regardless of the cause

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

Which of these statements concerning an individual Disability Income policy is TRUE? premiums are normally tax-deductible age of the insured determines the amount of the benefits normally includes an elimination period benefits are normally taxable

normally includes an elimination period

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

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 waiver benefit clause concurrent benefit clause guaranteed benefit clause

residual benefit clause

R has 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 recurrent disability presumptive disability occupational disability

residual disability

What does a Guaranteed Insurability rider provide a Disability Income policy owner? the guarantee that the premiums will never increase the guarantee that the policy will never be canceled the ability to periodically increase the amount of coverage without evidence of insurability the ability to periodically increase the amount of coverage only with evidence of insurability

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