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Accident And Health > Chapter 13 > Flashcards

Chapter 13 Flashcards

1
Q

What is included is earned income for tax purposes?

A

Commissions, bonus, salary

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2
Q

A partial disability policy pays up to ____% of the total DI benefit, for up to _____ months.

A

50%; 6

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3
Q

What are the common elimination period durations?

A

30, 60, 90, 180, and 365 days (selected by the owner)

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4
Q

T/F: An AD&D policy only provides coverage against accidental loss.

A

T

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5
Q

How can WC be obtained or provided by the employer?

A

Through a commercial insurer, the state compensation fund or self-insured

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6
Q

The loss is a limb on an AD&D policy is called the ___________.

A

Capital sum

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7
Q

A BOE policy provides benefits for an insureds ___________ expense.

A

Normal business

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8
Q

A DI policy will provide monthly income that does not exceed ____% to _____% of a persons gross income.

A

50; 60

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9
Q

WC provides coverage against __________ work related injuries.

A

Compensable

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10
Q

The rider that gives benefits until the disabled is eligible for SS benefits is called the ____________ Rider.

A

SS Supplement Benefit

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11
Q

T/F: Benefits from an individual DI policy are received taxable.

A

F; individual benefits are received tax free

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12
Q

What is the advantage when an disability is considered a recurrent disability?

A

No new elimination period exists, and the insured receives immediate benefits

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13
Q

Explain the principal sum

A

The death benefit provided on an AD&D policy

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14
Q

Death or dismemberment must occur on an AD&D policy within ____ days for benefits to be paid.

A

90

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15
Q

What is the period at the beginning of each new disability policy where benefits are not provided?

A

The elimination or waiting period

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16
Q

An _________ DI policy provides coverage for disabilities that occur both on and off the job.

A

Occupational

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17
Q

What DI rider increases the monthly income amount to offset inflation?

A

The Cost Of Living Rider

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18
Q

What policy is designed to pay the insured if she cannot work due to injury or illness?

A

A disability policy

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19
Q

Define partial disability.

A

The inability to perform some, but not all of you occupation reaponsibilities

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20
Q

A BOE policy is not designed to pay the disabled owner an _______ or ________.

A

Income; salary

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21
Q

T/F: A guaranteed insurability rider allows more coverage to be purchased at anytime without underwriting.

A

F; an insurer will limit the increase option to a specified age, such as 40 or 50.

22
Q

List five benefits that may be provided by WC.

A

Unlimited medical benefits, survivor income, funeral expense coverage, disability income, and rehabilitation benefits

23
Q

The exclusion from coverage of a particular illness or injury may be done using an _______ rider.

A

Impairment

24
Q

What is the doctors statement verifying that a disability exists preventing an insured from working?

A

Proof of loss

25
Q

What is the name of a disability that appears for a second time?

A

A recurrent disability

26
Q

What is the ceiling for the disability benefit by WC?

A

66 2/3% of income

27
Q

Premiums paid for individual DI policies are __________.

A

Not deductible

28
Q

T/F: The shorter the elimination period, the more expensive the DI policy.

A

T

29
Q

What type of income is protected by a DI policy?

A

Earned income

30
Q

DI premiums are waived by the insurer once the insured is disabled for _____ months.

A

3

31
Q

A DI policy with a 90-day elimination period would provide how many days of benefits for a disability lasting one year?

A

12 months minus 3 months (90days) equals approximately 9 months or 270 days.

32
Q

What policy provides benefits to the employer in the event a significant employee dies or becomes disabled?

A

A key employee policy

33
Q

Employer paid DI premiums are deductible for the ________.

A

Employer

34
Q

T/F: AD&D stands for Automatic Dividend and Distribution

A

F; it stands for Accidental Death and Dismemberment

35
Q

What is the length of short term DI policy benefits?

A

From 13 to 52 weeks

36
Q

What is the definition of a permanent disability?

A

A disability expected to last a lifetime

37
Q

What is the standard disability definition?

A

A persons inability to perform her normal duties or occupation

38
Q

What is a presumptive disability?

A

A disability cause by loss of sight, speech, or hearing

39
Q

The dismemberment benefit on an AD&D policy is equal to ___% of the death benefit.

A

50%

40
Q

What are DI policy premiums based on?

A

The elimination period, length and amount of monthly benefit, occupation, hobbies, age, sex, etc.

41
Q

WC is __________, employee sponsored coverage.

A

Mandatory

42
Q

What DI rider allows the policyowner to purchase additional amounts of protection without qualifying medically?

A

The guaranteed insurability rider

43
Q

Explain residual disability.

A

A type of partial disability benefit that pays based on a percentage of lost income

44
Q

To be considered a recurrent disability, the same disability must again disable the insured within ___ months.

A

6

45
Q

Benefits received from a group, employer paid DI policy are taxable to the _________.

A

Employee

46
Q

What type of DI policy is designed to make funds available to purchase the business interest of a disabled partner?

A

A disability buy sell policy

47
Q

T/F: a DI return of premium rider returns a portion of premiums paid to owners at a predetermined time.

A

T

48
Q

Define the term accident.

A

An outside event, beyond the control of the individual, that damages tissue or bone

49
Q

What is the name for DI benefits provided only for off the job disabilities?

A

No occupational disabilities

50
Q

BOE premiums are _________ to the owner and benefits received are __________.

A

Tax-deductible; taxable

Accident And Health (6 decks)

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