Study Deck Flashcards
Maximum amount of incurrence provided on a life without medical
Non-evidence maximum NEM
Maximum amount of life insurance the insurer will issue on one life
Overall Maximum OM
Time frame when employees can change their current plans or coverage amounts, or to drop coverage
Open enrollment period
Cashing in a portion of the value of life insurance when the insured is diagnosed with a terminal illness and death is imminent
Living benefits
Coverage continues for a disabled plan member without the payment of premiums
Waiver - of - premium provision
If a beneficiary is found to have murdered the insured, proceeds will be payable to the estate and not the beneficiary
Criminal act exclusion
Paying regular group life premiums each year until the retiree’s death
Current cost funding
A lump sum payment to an insurer to transfer the liability of the retiree’s death
Single premium paid-up funding
Paying for the cost of retiree life insurance over a specific period of time i.e 5-10 years
Installment funding
Lump sum payment to an insured that has been diagnosed with a covered life-threatening illness and survived for a specific period
Critical illness insurance benefits
can be forfeited, carried forward or paid out (illness benefits)
Unused sick leave entitlements
Benefits paid through payroll usually for Salaried employees
Salary continuance plan
Can be tiered and/or salary related benefit payments
Salary continuance plan benefit schedule
Full salary is paid for a number of weeks followed by a lower percentage for the balance
Tiered benefit schedule
formal income replacement plans for shorter period of disability
Weekly indemnity/STD plans
A plan that pays before and after the EI benefit period
Carve out plan
A plan that pays before and after the EI benefit period as well as a period declined by EI
Wrap around plan
Disabilities payable under WCB are not covered
Non-occupational basis
An employer arrangement to pay benefit if an employee suffers a loss of employment income due to illness or injury
Definition of wage loss replacement under IT-428
