Podcast
Questions and Answers
Which of the following is NOT a provision in a disability income policy?
Which of the following is NOT a provision in a disability income policy?
- Replacement provision
- Renewability provision
- Deductible and coinsurance provision (correct)
- Waiting period
Which type of disability would be less than total impairment and equal to permanent impairment?
Which type of disability would be less than total impairment and equal to permanent impairment?
Permanent partial disability
The waiver of premium does NOT include which provision?
The waiver of premium does NOT include which provision?
- All future premiums are waived if the insured recovers from the disability (correct)
- Premiums are waived upon death
- Premiums are deferred until recovery
- Premiums are waived during the period of disability
Which of these statements is NOT true concerning recurrent disabilities?
Which of these statements is NOT true concerning recurrent disabilities?
Which of the following could lower the premium of a proposed disability income policy?
Which of the following could lower the premium of a proposed disability income policy?
An individual covered under a disability income policy may be eligible for a partial disability benefit if:
An individual covered under a disability income policy may be eligible for a partial disability benefit if:
Kim is insured under a disability income insurance policy with an own-occupation clause. She was recently injured in an automobile accident and can no longer perform the tasks of her job. Kim is now considered to be:
Kim is insured under a disability income insurance policy with an own-occupation clause. She was recently injured in an automobile accident and can no longer perform the tasks of her job. Kim is now considered to be:
A rehabilitation benefit is intended to:
A rehabilitation benefit is intended to:
A policyholder suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision?
A policyholder suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision?
Tom has a rider on his disability income policy that guarantees the right to increase his benefits without a medical exam. What kind of rider is this?
Tom has a rider on his disability income policy that guarantees the right to increase his benefits without a medical exam. What kind of rider is this?
A disability policyholder is injured and becomes totally disabled. The benefits pay for 2 years, starting from the date of the injury. What is this time period called?
A disability policyholder is injured and becomes totally disabled. The benefits pay for 2 years, starting from the date of the injury. What is this time period called?
Manuel is considered to be a disabled person as defined by the Americans with Disabilities Act (ADA). As such, he is unable to perform any of the following life activities EXCEPT:
Manuel is considered to be a disabled person as defined by the Americans with Disabilities Act (ADA). As such, he is unable to perform any of the following life activities EXCEPT:
The monthly benefit for an individual disability income policy is usually limited to a percentage of the insured's income in order to avoid:
The monthly benefit for an individual disability income policy is usually limited to a percentage of the insured's income in order to avoid:
Coming from an insurance point of view, which of the following is the main risk associated with disability?
Coming from an insurance point of view, which of the following is the main risk associated with disability?
What is the purpose of a Disability Income Benefit?
What is the purpose of a Disability Income Benefit?
The factor used most often when underwriting a disability income policy is:
The factor used most often when underwriting a disability income policy is:
Typically, Long-Term Disability benefits are coordinated with which benefit plan?
Typically, Long-Term Disability benefits are coordinated with which benefit plan?
Allen has a disability income policy with a $2,500 monthly benefit and a 30-day elimination period. He is unable to work 90 days following an automobile accident. What will the policy pay?
Allen has a disability income policy with a $2,500 monthly benefit and a 30-day elimination period. He is unable to work 90 days following an automobile accident. What will the policy pay?
Which of the following statements regarding Group Disability Income insurance is TRUE?
Which of the following statements regarding Group Disability Income insurance is TRUE?
Claims payable to a Disability Income insured, even when the insured can continue to work, are the result of a:
Claims payable to a Disability Income insured, even when the insured can continue to work, are the result of a:
In what form do disability income policies typically pay benefits?
In what form do disability income policies typically pay benefits?
The elimination period in a disability income policy serves the same purpose as:
The elimination period in a disability income policy serves the same purpose as:
The waiting period for a disability insurance policy:
The waiting period for a disability insurance policy:
Which of these would NOT be considered a presumptive disability?
Which of these would NOT be considered a presumptive disability?
An example of a presumptive disability would be:
An example of a presumptive disability would be:
What are residual disability income insurance payments based on?
What are residual disability income insurance payments based on?
A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilizing:
A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilizing:
What is the elimination period of an individual disability policy?
What is the elimination period of an individual disability policy?
Loss of income insurance provides:
Loss of income insurance provides:
Which clause defines total disability as being unable to perform the major duties of the insured's regular occupation?
Which clause defines total disability as being unable to perform the major duties of the insured's regular occupation?
What is the primary factor that determines the benefits paid under a disability income policy?
What is the primary factor that determines the benefits paid under a disability income policy?
Frank is shopping for a disability income policy. Which of the following would have the HIGHEST premium?
Frank is shopping for a disability income policy. Which of the following would have the HIGHEST premium?
What percentage of a participant's income are group long-term disability benefit amounts typically limited to?
What percentage of a participant's income are group long-term disability benefit amounts typically limited to?
Which disability policy provision would address any concerns of the value of the benefits decreasing over time?
Which disability policy provision would address any concerns of the value of the benefits decreasing over time?
A disability elimination period is best described as a:
A disability elimination period is best described as a:
Flashcards
Elimination Period
Elimination Period
A period of time an insured must wait before disability benefits are paid.
Partial Disability Benefits
Partial Disability Benefits
Disability benefits designed to cover a portion of lost income when an insured can only work part-time.
Residual Disability
Residual Disability
A type of disability where ongoing income is limited by the insured's reduced earning capacity due to an impairment.
Total Disability
Total Disability
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Permanent Partial Disability
Permanent Partial Disability
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Presumptive Disability
Presumptive Disability
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Primary Risk of Disability
Primary Risk of Disability
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Disability Income Benefits
Disability Income Benefits
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Benefit Limit
Benefit Limit
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Recurrent Disability Provision
Recurrent Disability Provision
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Elimination Period and Premium Relationship
Elimination Period and Premium Relationship
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Cost of Living Benefits
Cost of Living Benefits
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Coordination with Social Security
Coordination with Social Security
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Group Disability Benefit Limit
Group Disability Benefit Limit
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Deductibles and Coinsurance in Disability Insurance
Deductibles and Coinsurance in Disability Insurance
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Study Notes
Disability Income Policy Provisions
- Deductible and coinsurance provisions are NOT typically included in a disability income policy.
- Recurrent disabilities no longer require a new elimination period for coverage continuation.
Understanding Types of Disabilities
- Permanent partial disability represents impairment that is less than total; it is considered a long-term effect.
- Total disability is defined as being unable to perform the main duties of one’s regular occupation, as seen in own-occupation clauses.
Premiums and Benefits
- Increasing the elimination period can lower premium costs for disability income policies.
- Disability income policies often limit monthly benefits to a percentage of the insured's income to prevent over insurance.
Financial Aspects of Disability
- The primary risk of disability from an insurance standpoint is the loss of income.
- Disability income benefits are intended to cover living expenses when the insured is unable to work.
Claims and Definitions
- Partial disability benefits apply if the insured can perform some job activities part-time but faces an income decrease.
- Presumptive disability applies when a claim is payable even if the insured can continue working; examples include total deafness.
Waiting Period and Claims
- The elimination period, similar to a deductible, is the waiting time before benefits are paid out for a disability.
- Residual disability income insurance payments are calculated based on the decrease in the insured’s earnings due to disability.
Additional Considerations
- Long-term disability benefits usually coordinate with Social Security plans to ensure comprehensive coverage.
- Cost of living benefits address potential depreciation of benefits over time.
Miscellaneous Facts
- A disability elimination period functions as a time deductible, impacting when benefits begin.
- Group long-term disability benefits are typically capped at 60% of a participant's income.
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Description
Test your knowledge on disability income policies with this quiz. It covers important concepts such as provisions, types of disabilities, and premiums. Perfect for students or professionals looking to reinforce their understanding of disability insurance.
