Disability Income – Lesson 14

Question 0

When a person who has been receiving disability income benefits is able to return to work part time and is receiving only part of his former earnings, this would be considered a:

Answer 0

Residual disability

Question 1

A disability income policy would do what?

Answer 1

Replace a partial portion of income if you were disabled.

Question 2

What is the time span called between the start of a covered disability and the date benefits become payable?

Answer 2

Elimination period.

Question 3

With a non-occupational injury be covered under disability income policy?

Answer 3

Yes

Question 4

What type of disability insurance would provide benefits if someone becomes ill and is unable to work?

Answer 4

Disability income insurance

Question 5

An insured’s accident policy uses the phrase “accidental bodily injury” to define what constitutes accidental injury and/or resulting death. This phrase:

Answer 5

Is less restrictive than the phrase, accidental means.

Question 6

Total disability can be defined differently and various policies. Which term means the insured cannot perform the duties of an occupation for which he is reasonably qualified by education, training, and experience?

Answer 6

Any occupation

Question 7

George returned to work after recovering from a disability. However, he now is earning less as he can only work on a part-time basis. This is referred to as a:

Answer 7

Residual disability

Question 8

A person is classified as being totally disabled as he suffered the loss of a leg or an arm in an automobile accident. This is called a:

Answer 8

Presumptive disability

Question 9

The period of time after the insured suffers a covered disability until benefits become payable is the:

Answer 9

Elimination period.

Question 10

There is a rider that can be added to a disability income policy that makes up for social insurance benefits that have not started, were denied, or paid at a lesser benefit. It is called:

Answer 10

Social Security rider

Question 11

A company that wishes to protect itself from various possible losses might wish to consider purchasing what?

Answer 11

1. Business overhead expense ins.
2. Key person disability insurance
3. Reducing term disability ins.

Question 12

Benefit amounts under disability income policies:

Answer 12

Are limited and defined in terms of the insureds earnings.