Unit 15 Flashcards
The inability to work
Disability
What are the 2 types of definitions for work
Own occupation and Any occupation
What contract pays a benefit to cover income lost due to a disability
Income replacement contract
A condition that automatically qualifies insured for disability benefits regardless of the ability to work
Presumptive disability
What 4 conditions qualify you for presumptive disability
Loss of or loss of use of 2 limbs, total and permanent blindness in both eyes, total loss of speech, total loss of hearing in both ears
Some older policies may require house confinement or a doctors care, what are these requirements called
Physician care requirement or medically defined disability
Benefits that pay a disability income either to make up lost income or restore income to prior
Indeminity
Elimination Period or Waiting period
Time period after becoming disabled before benefits begin
Benefit period
The specified time period in which benefits are paid
Waiver eliminating the premiums during a disability period and retroactively paying premiums from the waiting period
Waiver of Premiums
What pays an additional benefit for a limited period of time to make up for government benefits
Additional Monthly Benefit rider
A monthly benefit paid during the benefit period, while the insured remains disabled, and social benefits are not being paid
Social Insurance Supplement rider (SIS)
Types of disability insurance coverages
Occupational, Non occupational
Types of benefits only for those who go back to work
Partial Disability benefits, Residual Disability benefits
A protection created for those who go back to work after being disabled
Recurrent Disability
How does a Partial Disability benefit pay
Pays 50% of benefit and for a limited period of time
How does a Residual Disability benefit pay
Pays the specified percentage of lost income and for as long as the income reduction continues
What does the Recurrent Disability clause prevent
Waiting through the Elimination period for the same reoccurring disability
Optional Benefit used to match inflation
Cost of living adjustment (COLA) rider
Allows insured to buy additional insurance coverage without proof
Future Increase Option (FIO) rider
Provision allowing insurer to reduce benefits paid if the insureds income is less than when policy was purchased
Relation of Earnings to insurance provision
What does the Accidental death and dismemberment rider do
pays a principal sum if accidental death, loss of sight in both eyes, or loss of 2 limbs
What does the rehabilitation benefit pay for
Vocational Training
What benefit helps pay for medical bills from a non disabling injury
Medical Reimbursement Benefits
Provides a percentage of premiums paid for a stated period and any benefits paid during that period will be subtracted from the refund amount
Return of Premium Rider
Common Exclusions of disability policies
War or military service, Attempted suicide or self harm, non commercial aviation, commission of felony, living overseas
What is the most important consideration in Disability underwriting
Occupation
Who does Key Person Disability Insurance cover
A key person to a company
What is a Key Person
Some who’s disability will cause financial loss
A Business Overhead Expense Policy works best for what kind of business
Small business
Who’s disability does a Business Overhead Expense Policy cover
The business owners
How long is the Elimination period for a Buy Sell Disability Insurance
1-2 years
Disability benefits are based off what
Primary Insurance Amount
Form of insurance provided by the state government providing wage replacement and medical benefits to employees injured in exchange for waiving the right to sue employer
Worker’s Comp
