Study Deck

Question 1

Maximum amount of incurrence provided on a life without medical

Answer 1

Non-evidence maximum NEM

Question 2

Maximum amount of life insurance the insurer will issue on one life

Answer 2

Overall Maximum OM

Question 3

Time frame when employees can change their current plans or coverage amounts, or to drop coverage

Answer 3

Open enrollment period

Question 4

Cashing in a portion of the value of life insurance when the insured is diagnosed with a terminal illness and death is imminent

Answer 4

Living benefits

Question 5

Coverage continues for a disabled plan member without the payment of premiums

Answer 5

Waiver - of - premium provision

Question 6

If a beneficiary is found to have murdered the insured, proceeds will be payable to the estate and not the beneficiary

Answer 6

Criminal act exclusion

Question 7

Paying regular group life premiums each year until the retiree’s death

Answer 7

Current cost funding

Question 8

A lump sum payment to an insurer to transfer the liability of the retiree’s death

Answer 8

Single premium paid-up funding

Question 9

Paying for the cost of retiree life insurance over a specific period of time i.e 5-10 years

Answer 9

Installment funding

Question 10

Lump sum payment to an insured that has been diagnosed with a covered life-threatening illness and survived for a specific period

Answer 10

Critical illness insurance benefits

Question 11

can be forfeited, carried forward or paid out (illness benefits)

Answer 11

Unused sick leave entitlements

Question 12

Benefits paid through payroll usually for Salaried employees

Answer 12

Salary continuance plan

Question 13

Can be tiered and/or salary related benefit payments

Answer 13

Salary continuance plan benefit schedule

Question 14

Full salary is paid for a number of weeks followed by a lower percentage for the balance

Answer 14

Tiered benefit schedule

Question 15

formal income replacement plans for shorter period of disability

Answer 15

Weekly indemnity/STD plans

Question 16

A plan that pays before and after the EI benefit period

Answer 16

Carve out plan

Question 17

A plan that pays before and after the EI benefit period as well as a period declined by EI

Answer 17

Wrap around plan

Question 18

Disabilities payable under WCB are not covered

Answer 18

Non-occupational basis

Question 19

An employer arrangement to pay benefit if an employee suffers a loss of employment income due to illness or injury

Answer 19

Definition of wage loss replacement under IT-428