Chapter Thirteen Quiz

Question 1

Max pays for an individual occupational disability income policy. If he becomes disbaled while on vacation, the insurer:

Answer 1

Must be notified within 20 days of the onset of the disability

Question 2

Which of the following best describes an applicants avocations?

Answer 2

Hobbies

Question 3

In a disability policy, the probationary period refers to the time:

Answer 3

During which illness-related disabilities are excluded from coverage

Question 4

The premium for an insureds group disability income policy is $250 per month. Her employer contributes $125 of the premium. If the inusred becomes disabled and receives $350 per week in benefits, she will pay income tax on what amount of the benefit?

Answer 4

$175

Question 5

An insured is involved in a car accident. In addition to less serious injuries, he permanently loses the use of his leg and is rendered completely blind. The blindness improves a month later. To what extent will the insured receive Presumptive Disability benefits?

Answer 5

No benefits

Question 6

If a business wants to buy a disability income policy on a key employee, which of the following is considered the beneficiary?

Answer 6

The employer

Question 7

As insured receives individual disability income benefits. Which of the following describes the taxation status of the benefits that the insured receives?

Answer 7

The benefits are income tax-exempt

Question 8

Which of the following would qualify someone for disabiltiy benefits?

Answer 8

Both accident and sickness

Question 9

All of the following are true about group disability income insurance:

Answer 9

• Benefits are usually short term
• The longer the waiting period, the lower the premium
• The waiting period starts at the onset of the injury or sickness

Question 10

What is the maximum period that an insurer would pay benefits in accordance with an Additional Monthly Benefit rider?

Answer 10

1 year

Question 11

An insured purchased a disability income policy with a 10 year benefit period. The polidy stated a 20 day probationary period for illness. If the insured is hospitalized with an illness 2 weeks after the policy was issued, how much will the policy pay?

Answer 11

Nothing: illness is not covered during the first 20 days of the contract

Question 12

When an insurer combines two periods of disability into one, the insured must have suffered a:

Answer 12

Recurrent disability