Disibility Income
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
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
In the event of an illness, a(n) policy would reimburse an insured for loss of earnings?
disability income
M becomes disabled and is unable to work for six months. M dies soon after from complications arising from this disability. M has a Disability Income policy that pays $2,000 a month. Which of the following statements BEST describes what is owed to her estate?
earned, but unpaid benefits
Non-occupational disability coverage is designed for?
employees who suffer non-work related disabilities, since work-related disabilities are covered by Workers' compensation
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
What is the elimination period of an individual disability policy?
time period a disabled person must wait before benefits are paid
R becomes disabled and owns a Disability Income policy. When is R eligible to receive disability benefits?
upon satisfying the elimination period requirement
R becomes disabled and owns an Individual Disability Income policy. When is R eligible to receive disability benefits?
upon satisfying the elimination period requirements
What is the primary factor that determines the benefits paid under a disability income policy?
wages
The provision in a health insurance policy that suspends premiums being paid to the insurer while the insured is disabled is called the
waiver of premium
An insured owns an individual Disability Income policy with a 30-day Elimination Period for sickness and accidents and a monthly indemnity benefit of $500. If the insured is disabled for 3 1/2 months, what is the MAXIMUM amount he would receive for an approved claim?
$1,250
N is covered under an individual Disability policy with a 30-day Elimination period and a monthly benefit of $500. N is totally disabled for 3 1/2 months. N's total benefit received on this claim is
$1,250
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?
4 months
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
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?
recurrent disability
What does a Guaranteed Insurability rider provide a Disability Income policyowner?
the ability to periodically increase the amount of coverage without evidence of disability
A disability elimination period is best described as a
time deductible
Which of the following is the MOST important factor when deciding how much Disability Income coverage an applicant should purchase?
applicant's monthly income
