Types of Health Policies

Question 1

What is presumptive disability?

Answer 1

A provision found in most policies

Question 2

What does Presumptive Disability specify?

Answer 2

The condition that will automatically qualify the insured for full disability benefits.

Question 3

What does Presumptive Disability provide benefits for?

Answer 3

Dismemberment
Total and permanent blindness
Loss of speech or hearing

Question 4

What does the Recurrent Disability provision specify?

Answer 4

The period of time of which an injury/illness will be considered as a continuation of a prior period of disability.

Question 5

Is a recurrence under the Recurrent Disability provision considered a new period of disability?

Answer 5

No

Question 6

If an illness/injury is considered recurrent is it subject to another elimination period?

Answer 6

No

Question 7

What is a probationary period?

Answer 7

Waiting period in addition to elimination period

Question 8

What does a probationary period apply to?

Answer 8

Sickness only

Question 9

What is the Benefit Period?

Answer 9

The length of time that the monthly disability benefit payment will last for each disability after the elimination period.

Question 10

What is Accidental Bodily Injury?

Answer 10

Damage to body is unexpected and unintended

Question 11

Usually no more than what percentage of original earnings are rewarded to the disabled?

Answer 11

66%

Question 12

When are Social Insurance Supplements (SIS) or Social Security Riders used?

Answer 12

When insured is eligible for SS but has a waiting period
If insured is denied SS
When amount payable under SS is less than amount payable under the rider (difference is paid)

Question 13

Does the Business Overhead Expense reimburse lost income?

Answer 13

No

Question 14

What is the elimination period for Business Overhead Expense?

Answer 14

15 - 30 days

Question 15

How long can the benefits of the Business Overhead Expense last?

Answer 15

1 - 2 years

Question 16

What does the Business Disability Buyout Policy specify?

Answer 16

How the business will pass between owners when one dies or becomes disabled.

Question 17

What payment is used when receiving the benefit for the Business Disability Buyout Policy?

Answer 17

Lump sum

Question 18

What does a Limited Risk Policy cover?

Answer 18

Defines specific risks in which accidental death or dismemberment benefits will be paid

Question 19

What does a Special Risk Policy cover?

Answer 19

Only unusual types of risks that aren’t normally covered.

Question 20

What does Medical Expense Insurance cover?

Answer 20

Basic hospital, surgical and medical.

Usually no deductible.

Question 21

What does a Basic Hospital Expense Coverage cover?

Answer 21

Hospital room and board
Misc. hospital expenses
No deductible

Question 22

What is limited in a Basic Hospital Expense Coverage plan?

Answer 22

Hospital room and board are limited to s set dollar amount per day for a max number of days

Question 23

What does Basic Medical Expense Coverage cover?

Answer 23

Nonsurgical

Question 24

What is Basic Medical Expense Coverage limited to?

Answer 24

Number of visits per day
Limit per visit
or limit per hospital stay

Question 25

What does the Basic Surgical Expense Coverage cover?

Answer 25

Pays for cost of surgeons services

Question 26

What is a surgical schedule?

Answer 26

List of types of operations covered and assigned dollar amounts

Question 27

What is relative value?

Answer 27

Each surgical procedure is assigned a number of points, relative to max number of points.
Represents amount payable per point.