Section 14 - disability income insurance

Question 1

Which of the following statements regarding group disability income insurance is TRUE?
A. It pays 100% or more of an insured’s income in the event of disability
B. It provides benefits for non-occupational illnesses and injuries
C. It is generally more expensive than individual policies
D. It usually pays for occupation related disabilities.

Answer 1

It provides benefits for non-occupational illnesses and injuries

Question 2

Which of these would not be considered a presumptive disability?
A. Loss of vision and speech
B. Loss of hearing
C. Loss of a leg or arm
D. Loss of a leg and arm

Answer 2

Loss of a leg or arm

Question 3

Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amount of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this?
A. Guaranteed insurability rider
B. Additional coverage writer
C. Paid up option rider
D. Extended insurability rider.

Answer 3

Guaranteed insurability rider

Question 4

The waiver of premium does NOT include which provision?
A. All future premiums are waived if the insured recovers from the disability
B. If the insured qualifies, the premiums are waived retroactively to the beginning of the disability
C. The waiver of premium generally does not extend past the insured’s age 60 or 65
D. The insured must be disabled for a set period of time before benefits begin.

Answer 4

All future premiums are waived if the insured recovers from the disability

Question 5

Tyler purchased a disability policy with a waiver of premium rider on April 1. He is disabled on May 1. On June 1, he receives proof of permanent and total disability and submit a claim. He begins receiving benefits on June 15. When are his premiums waived?
A. April 1
B. May 1
C. June 1
D. June 15

Answer 5

May 1

Question 6

What is the purpose of a disability income benefits?
A. Provide money for a living expenses
B. Completely replace the insured’s total income
C. Reimbursed for medical expenses related to a disability
D. Pay for business overhead expenses if the owner becomes disabled.

Answer 6

Provide money for living expenses

Question 7

A disability elimination period is best described as a
A. Time deductible
B. Dollar deductible
C. Eligibility
D. Probation

Answer 7

Time deductible

Question 8

A policy owner suffers an injury that renders him in capable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision?
A. Partial disability
B. Non-disabling injury
C Presumptive disability,
D. Flat amount disability

Answer 8

Partial disability

Question 9

A disability income policy can prevent an insured from earning a higher income, then if he or she were working by utilizing
A. Elimination
B. Probationary period
C. Benefit limits
D. Deductibles

Answer 9

Benefit limits

Question 10

A rehabilitation benefit is intended to
A. Prepare the insured to return to employment
B. Minimize the insurance liability
C. Give the insured time to find a new career
D. Increase the overall benefits given to the insured

Answer 10

Prepare the insured to return to employment