Insurance Chapter 5

Question 1

Own Occupation

Answer 1

unable to engage in own occupation (easiest to claim benefits)

Question 2

Modified Own/Any Occupation

Answer 2

unable to engage in any occupation for which they are qualfied

Question 3

Split Definition

Answer 3

can use both definitions

Question 4

Totally Disabled

Answer 4

SSB rules
unable to engage in any gainful substantial activity
lasting continuously for 12+ months or will end in death

Question 5

Loss of Income

Answer 5

doesnt define disability, can be partial

Question 6

guaranteed renewable

Answer 6

can renew but premiums may go up

Question 6

noncancelable contract

Answer 6

individual can keep in force @ stated level of premium

Question 6

conditionally renewable

Answer 6

allowes noncancellable or guaranteed to continue beyond age 65, 2 yr benefit. only extend if still active employee

Question 7

presumptive disability

Answer 7

policies will provide total benefits if insured loses sight, hearing, speech, both hands/feet, one hand/one foot

sometimes total & permanent, sometimes temp loss

Question 8

Benefit Amount

Answer 8

typically 50-60% of earnings. more earnings = lesser percentage