Ch 4 Disability Income and Related Insurance Part II Flashcards
What benefit is based on a primary insurance amount (PIA)?
Social Security disability benefit
What does the amount of disability benefit that an insured can receive depend on?
The insured’s income at the time of policy application
What are the four types of workers compensation benefits?
Medical, income, rehabilitation and death benefits
What type of health insurance would pay for hiring a replacement for an important employee who becomes disabled?
Key person disability insurance
What is the term for a period of time immediately following a disability during which benefits are not payable?
Elimination period
What is the primary purpose of disability income insurance?
To replace income loss due to a disability
How does someone qualify for Social Security disability income benefits?
The insured must have the proper insured status (such as fully insured), meet the definition of disability, and satisfy the waiting period
What type of disabilities will be covered by occupational coverage?
Disabilities that result from accidents or sicknesses that occur on or off the job
What type of health insurance covers partners or corporate officers of a closely held business?
Disability buy-sell
With key person disability insurance, who pays the policy premiums?
The business (employer)
What entity regulates Worker’s Compensation benefits?
State government
What portion, if any, of the individual disability income policy benefits are taxed to the insured?
Disability benefits are not income taxable.
What is another name for old age, survivors, and disability insurance benefits?
OASDI
Social Security
A waiver of premium provision may be included with what type of health insurance policies?
Disability income
What is the primary purpose of disability income insurance?
To replace income lost due to a disability
What is the own occupation disability?
Insureds inability to perform duties of his or her current job or an occupation for which the insured is educated and trained
What type of insurance covers an employee who is hurt on the job?
Workers compensation
How can an AD&D policy be written?
As a rider to a health insurance policy or as a separate policy
What is a presumptive disability provision?
Provision found in most disability income policy that specifies the conditions that will automatically qualify for full disability benefits
After the elimination period, totally disabled insured qualified for benefits from a disability income policy that has a waiver of premium rider. What will happen to the premium that was paid into the policy during the elimination period?
Premium will be refunded
What is the purpose of a buy-sell agreement for health insurance policies?
To specify how the business will pass between owners when one of them dies or becomes disabled
What type of health insurance is sold to small business owners to reimburse them for the overhead expenses?
BOE - Business overhead expense insurance
