chapter 14 disability income insurance quiz

Question 1

in a disability income policy which of these clauses acts a deductible?

Answer 1

elimination period

Question 2

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?

Answer 2

guaranteed insurability rider

Question 3

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 diabled. he returns to work on december 1. how many months of benefit are payable?

Answer 3

4 months

Question 4

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?

Answer 4

the insurere will recind the policy, deny the claim and recover all payments made

Question 5

M becomes disabled and is unable to work for 6 months. M dies soon after from complications arising from this disability. M has a disability income policy that pays $2000 a month. which of the following statements BEST describes what is owed to her estate?

Answer 5

earned but unpaid benefits

Question 6

which of these statements concerning an individual disability income policy is TRUE

Answer 6

normally includes a elimination period

Question 7

when a person returns to work after a period of total disability but cannot earn as much as he or she did before the disability, this situation

Answer 7

residual disability

residual amount benefit is based on the proportion of income actually lost due to the partial disability taking into account the fact that the insured is able to work and earn income

Question 8

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 3.5 months. Ns total disability received on this claim is

Answer 8

$1250

Question 9

a disability elmination period is best described as a

Answer 9

time deductible

Question 10

in the event of an illness a ______ ______ policy would reimburse an insured for loss of earnings.

Answer 10

disability income

Question 11

when a person returns to work after a period of total disability but cannot earn as much as he or she did before the disability, this situation is called which of the following?

Answer 11

residual disability

Question 12

non occupational disability coverage is designed for

Answer 12

employees who suffer non work related disabilities since work related disabilities are covered by workers comp

Question 13

an individual disability income insurance applicant may be required to submit all of the follow information except

Answer 13

spouses occupation