Disability Income And Related Insurance Flashcards
What does the amount of disability benefit that an insured can receive depend on?
The insureds income at the time of policy application
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 disabilities will be covered by occupational coverage?
Disabilities that result from accidents or sicknesses that occur on or off the job
What is the term for a period of time immediately following a disability during which benefits are not payable
Elimination period
How does someone qualify for social security disability income benefits?
Insured must have the proper insured status (such as fully insured), meet the definition of disability, and satisfy the waiting period
What is the purpose of a buy-sell agreement for HI policies?
To specify how the business will pass between owners when one of them dies or becomes disabled
What is a presumptive disability provision?
Provision found in most disability income policies that specifies the conditions that will automatically qualify for full disability benefits
What portion, if any, of the individual disability income policy benefits are taxed to the insured?
None - not income taxable
A waiver of premium provision may be included with what type of HI policy?
Disability income
How can an AD&D policy be written?
As a rider to a HI policy or as a separate policy
4 types of workers comp benefits
Medical
Income
Rehabilitation
Death
What entity regulates workers comp benefits
State gov
Type of HI sold to small biz owners to reimburse them for the overhead expenses?
BOE - business overhead expense insurance
Primary purpose of disability income ins?
Replace income lost due to disability
What benefit is based on primary insurance amount? PIA
Social security disability benefit
After the elimination period, a 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?
The premium will be refunded
What type of HI would pay for hiring a replacement for an important employee who becomes disabled?
Key-person disability ins.
Another name for old age, survivors, and disability insurance benefits?
Social security
issuing a conditional receipt means coverage starts when
Right away if conditions have been satisfied
HI policies are incontestable after they have been in force for how long?
2 years
How is total disability defined
Insured cant his job for the first 2 years and any job thereafter
How often might you have to take a physical if you are collecting disability?
Every 6 months at the insurers expense
Primary purpose of disability coverage
replacement of lost wages
Most important factor to consider when writing disability ins.
Amount of lost wages
What does a longer waiting period do on a disability policy?
Reduces the premium
When does the waiting period start in a disability policy?
at the onset of the insured’s disability
If a disability policy has a 7 day elimination period and the insured is sick for 15 days they receive benefits for how long
8 days
When does the probationary period start on disability policies?
When the policy is first issued
Recurrent disability
Prior injury that reoccurs again - the elimination period is waived
Residual disability
Disability that never goes away - residual coverage pays the diff between what you used to make before your disability and what you can make now
Accidental means clause on a disability policy
No coverage if the insured is injured doing something he or she was meant to do
Accidental Bodily Injury Clause
Coverage applies as long as the injury was unintentional and unforseen
Guaranteed Purchase Rider
Allows the insured to purchase addtl coverage at certain intervals regardless of health
Cost of Living Rider
keeps policy limit up with inflation
Group disability covers what part of an employees gross earned income
Only a percentage
Individual disability covers what part of of an insureds income?
Only a percentage of an insureds after tax income
Who is covered under business overhead ins?
Self employed person
How long does a disability buy sell policy pay a corporation?
Up to one year
How long must you pay into social security to be fully insured for disability benefits?
40 quarters or 10 years
Waiting period for social security benefits?
5 Months
Social Security Disability require you cant work what and for how long
Cant work ANY job and its expected to last at least 1 year
Under the misstatement of age clause are the benefits or premiums adjusted?
Benefits
If an insured pays an overdue premium on a lapsed policy and does not hear from the co
The insured is automatically reinstated in 45 days
Under the unpaid premium provision, if a claim happens during the grace period
The co may subtract the overdue premium from the payout
A peril is a cause of loss. Health insurance covers 2 perils
accident and sickness
Occupational covers on and off the job. Nonoccupational covers
Off the job only
