Chapter 5 Cont 4 Flashcards
Wait period often with probationary/waiting period from policy issue date during which benefits will not be paid for illness related disabilities
10 to 30 days
Purpose of probationary period is to reduces chances of
Adverse selection against insurer
Adverse selection against insurer and helps insurer guard against individuals who would purchase disability income policy shortly after enveloping a disease or other condition that warrants immediate attention
Probationary period
Length of time over which monthly disability benefit payments will last for each disability after the elimination period has been satisfied
Injury
Sickness
Presumptive disability
Benefit period
Benefit period
Most polices offer 1, 2, 5, and to age 65 some offer Kim time benefits …longer benefit period the higher the
Injury
Sickness
Presumptive disability
Benefit limitations
Premiums will be
Provision that is found in most disability income polices which specifies the conditions that will automatically qualify the insured for
Full disability benefits
Sickness
Injury
Benefit period
Full disability benefits
Amount of monthly benefit payable under most disability income polices is based on a percentage of
Insureds past earnings
Compensation
Social insurance supplement
Sickness
Insureds past earnings
Primary purpose of disability income ins is to
Reimburse lost income while in the hospital
Reimburse loss of income to a family due to death of insured
Replace income lost due to disability
Replace income lost due to disability
Insured covered by a disability income policy that contains accidental means clause. The insured exits a bus by hyping down the steps and breaks an ankle …what coverage will apply
Coverage will apply since break was accidental
Coverage will apply but will be reduced by 505
No coverage will apply since injur could have been foreseen
No coverage will apply since injury could have been foreseen
In comparison to a policy that uses the accidental means definition a policy that uses accidental bodily injury definition would provide a coverage that is
Broader in general
More limited in general
More limited in duration
Broader in duration
Broader in general
Policy that uses accidental bodily injury will provide
Broader coverage than policy using accidental means
Bethany studies in England for semester while she is there she is involved in train accident that leaves her disabled. If Bethany owns a general disability policy what will be the extent of benefits that she receives
Full
50%
255
None
None
General disability policies dont cover war military service intentionally self inflicted overseas or suffered whil attempting felony
In a disability income policy all of the following are considered presumptive disabilities except
Loss of speech
Loss of one eye
Loss of hearing
Loss of two limbs
Loss of one eye
Provision found in most disability income polices which specifies the conditions that will automatically qualify insured for full didsability benefit
Presumptive disability
A mouthy of monthly benefits payable under most disability income policies based on percentage of insureds past earnings
Compensation
Benefit limitations
Overhead expense
Benefit limitations
Insured is involved in accident that renders him permanently deaf although he does not sustain any other major injuries. Insured is still able to perform his current job. What extent will he rec presumptive disability benefits
Full benefits
Partial benefits
Full benefits for 2 years
No benefits
Full benefits
These policies typically require the loss of at least two limbs total and permanent blindness or loss of speech or hearing
Presumptive disability
Insurers usually dont reimburse claimants for 100% of income lost due to disability. What is reason for limitations on coverage amounts
To provide incentive for insured to return to work
To make sure there is enough money to reimburse all claims
To reimburse only for premiums paid into policy
To provide an incentive for insured to return to work
In disability policy the probationary period refers to the time
Between first day of disability and the actual receipt of payment for disability incurred
During which illness related disabilities are excluded from coverage
Between the firs day of disability and the day disability must continue before insured receives any benefits
During which illness related disabilities are excluded from coverage
Client has new disability individual income policy with 20 day probationary period and 30 day elimination period. Ten days later client breaks leg and is off for 45 days. How many days of disability Benita will policy pay
15 days
Period of time immediately following disability during which benefits are not payable
Elimination period
Probationary period
Grace period
Back out period
Elimination period
Social security supplement or social security riders would provide for the payment of income befits in each of the situations below except
When insured is eligible for social security benefits but before the benefits begin
If insured has been denied coverage under social security
When the amount payable under social security is more than the amount payable under the rider
When the amount payable under social security is more than the amount payable under the rider
These riders provide benefits when the amount payable under social security is less than the amount payable under the rider
SSI social security supplement aka social security riders
The shorter the waiting period, the higher the
Premium
After the insured satisfies the waiting period they will receive benefits from the insurer for a limited
Benefit period
Which of the following disability income policies would have the highest premium
15 day waiting period/5 year benefit period
15 day waiting period/10 year benefit period
30 day waiting period/10 year benefit period
30 day waiting period/5 year benefit period
15 day waiting period 10 year benefit period
