Ch 5 Cont 5 Flashcards
Insured is hospitalized with back injury. Upon checking disability policy he learns he will not be eligible for benefits for at least 30 days. This would indicate that his policy was written with a 30 day
Disability period
Elimination period
Blackout period
Probationary period
Elimination period
Time immediately following start of disability when bed it’s are not payabl; used to reduce cost of providing coverage and eliminate filing of many claims
If business owner becomes totally disabled, business overhead expense policy wil pay all of the following except
Employee payroll
Loss of owners income
Rent
Utilities
Loss of owners income
In event of loss business overhead ins wil pay for
Rent
Loss of profits
Salary of business owner
Medical bills of the business owner
Rent
Social security supplement or social security riders would provide for payment of income benefits in each of the situations below except
When insured is eligible for social security benefits but before benefits begin
If insured has been denied coverage under social security
When the amount payable under social security is more than amount payable under rider
When amount payable under social security is more than the amount payable under the rider
Policy that uses accidental bodily injury will provide
Hsa
Fsa
Hra
Broader coverage than policy that uses accidental means definition
Broader coverage than policy that uses accidental means definition
Injured during war rendering him disabled. What will be benefits
05
Which is not true regarding business overhead expense policies
Benefits are usually limited to six months
Leased equipment expenses are covered by the plan
Premiums paid for BOE are tax deductible
Any benefits recd are taxable to the business
Benefits are usually limited to six months
is sold to Small business owners for purpose of reimbursing policy holder for business overhead expenses during period of total disability
Boe
Insured purchased disability income policy with 10 year benefit period. Policy sated 20 day probationary period for illness. If insured is hospitalized with illness 2 weeks after policy as issued, how much will policy pay?
10 years of benefits
Until insured released from hospital
Nothing as illness not covered during first 20 days of contract
Nothing as illnes not covered during firs 20 days of contract
Indisability income insurance the time between the onset of injury or sickness and when benefits begin is known as the
Probationary period
Elimination period
Qualification period
Enrollment period
Elimination period
Which agreement specifies how a business will transfer hands when one of owners dies or becomes disabled
Transfer of ownership’
Disability buy sell
Proprietary transfer
Absolute assignment
Disability buy sell
Which of following is feature of disability buyout plan
Short elimination period
Lump sum benefit payment option
Tax deductible premiums
Taxable benefits
Lump sum benefit payment option
Buyout plans usually allow for a
Lump sum payment of benefit
Small hardware store owner is involved in a car accident that renders him totally disabled for half a year. Which type of insurance would help him pay for expenses of companyduring time of his disability
Business disability policy
Business overhead expense policy
Key person ins
Disability buy sell agreement
BOE policy
Policy available to business owners that provides payment for normal business expenses in the event that the owner is disabled is called
Credit accidents nd health coverage
Partial disability
Recurrent disability
Business overhead expense
BOE
