Disability Income And Related Insurance

Question 1

What does the amount of disability benefit that an insured can receive depend on?

Answer 1

The insureds income at the time of policy application

Question 2

What is the own occupation disability?

Answer 2

Insureds inability to perform duties of his or her current job or an occupation for which the insured is educated and trained

Question 3

What type of disabilities will be covered by occupational coverage?

Answer 3

Disabilities that result from accidents or sicknesses that occur on or off the job

Question 4

What is the term for a period of time immediately following a disability during which benefits are not payable

Answer 4

Elimination period

Question 5

How does someone qualify for social security disability income benefits?

Answer 5

Insured must have the proper insured status (such as fully insured), meet the definition of disability, and satisfy the waiting period

Question 6

What is the purpose of a buy-sell agreement for HI policies?

Answer 6

To specify how the business will pass between owners when one of them dies or becomes disabled

Question 7

What is a presumptive disability provision?

Answer 7

Provision found in most disability income policies that specifies the conditions that will automatically qualify for full disability benefits

Question 8

What portion, if any, of the individual disability income policy benefits are taxed to the insured?

Answer 8

None - not income taxable

Question 9

A waiver of premium provision may be included with what type of HI policy?

Answer 9

Disability income

Question 10

How can an AD&D policy be written?

Answer 10

As a rider to a HI policy or as a separate policy

Question 11

4 types of workers comp benefits

Answer 11

Medical
Income
Rehabilitation
Death

Question 12

What entity regulates workers comp benefits

Answer 12

State gov

Question 13

Type of HI sold to small biz owners to reimburse them for the overhead expenses?

Answer 13

BOE - business overhead expense insurance

Question 14

Primary purpose of disability income ins?

Answer 14

Replace income lost due to disability

Question 15

What benefit is based on primary insurance amount? PIA

Answer 15

Social security disability benefit

Question 16

After the elimination period, a totally disabled insured qualified for benefits from a disability income policy that has a waiver of premium rider. What will happen to the premium that was paid into the policy during the elimination period?

Answer 16

The premium will be refunded

Question 17

What type of HI would pay for hiring a replacement for an important employee who becomes disabled?

Answer 17

Key-person disability ins.

Question 18

Another name for old age, survivors, and disability insurance benefits?

Answer 18

Social security

Question 19

issuing a conditional receipt means coverage starts when

Answer 19

Right away if conditions have been satisfied

Question 20

HI policies are incontestable after they have been in force for how long?

Answer 20

2 years

Question 21

How is total disability defined

Answer 21

Insured cant his job for the first 2 years and any job thereafter

Question 22

How often might you have to take a physical if you are collecting disability?

Answer 22

Every 6 months at the insurers expense

Question 23

Primary purpose of disability coverage

Answer 23

replacement of lost wages

Question 24

Most important factor to consider when writing disability ins.

Answer 24

Amount of lost wages

Question 25

What does a longer waiting period do on a disability policy?

Answer 25

Reduces the premium

Question 26

When does the waiting period start in a disability policy?

Answer 26

at the onset of the insured’s disability

Question 27

If a disability policy has a 7 day elimination period and the insured is sick for 15 days they receive benefits for how long

Answer 27

8 days

Question 28

When does the probationary period start on disability policies?

Answer 28

When the policy is first issued

Question 29

Recurrent disability

Answer 29

Prior injury that reoccurs again - the elimination period is waived

Question 30

Residual disability

Answer 30

Disability that never goes away - residual coverage pays the diff between what you used to make before your disability and what you can make now

Question 31

Accidental means clause on a disability policy

Answer 31

No coverage if the insured is injured doing something he or she was meant to do

Question 32

Accidental Bodily Injury Clause

Answer 32

Coverage applies as long as the injury was unintentional and unforseen

Question 33

Guaranteed Purchase Rider

Answer 33

Allows the insured to purchase addtl coverage at certain intervals regardless of health

Question 34

Cost of Living Rider

Answer 34

keeps policy limit up with inflation

Question 35

Group disability covers what part of an employees gross earned income

Answer 35

Only a percentage

Question 36

Individual disability covers what part of of an insureds income?

Answer 36

Only a percentage of an insureds after tax income

Question 37

Who is covered under business overhead ins?

Answer 37

Self employed person

Question 38

How long does a disability buy sell policy pay a corporation?

Answer 38

Up to one year

Question 39

How long must you pay into social security to be fully insured for disability benefits?

Answer 39

40 quarters or 10 years

Question 40

Waiting period for social security benefits?

Answer 40

5 Months

Question 41

Social Security Disability require you cant work what and for how long

Answer 41

Cant work ANY job and its expected to last at least 1 year

Question 42

Under the misstatement of age clause are the benefits or premiums adjusted?

Answer 42

Benefits

Question 43

If an insured pays an overdue premium on a lapsed policy and does not hear from the co

Answer 43

The insured is automatically reinstated in 45 days

Question 44

Under the unpaid premium provision, if a claim happens during the grace period

Answer 44

The co may subtract the overdue premium from the payout

Question 45

A peril is a cause of loss. Health insurance covers 2 perils

Answer 45

accident and sickness

Question 46

Occupational covers on and off the job. Nonoccupational covers

Answer 46

Off the job only