[SVL] Insurance 15

Which of the following terms describes a condition that automatically qualles insureds for disability benefits whether or not they can work?
A. Own occupation
B. Pure loss of income
C. Any occupation
D. Presumptive disability

Which type of insurance protects against loss of earned income due to sickness or injury sustained in an accident?
A. Accident insurance
B. Life insurance
C. Health insurance
D. Disability income insurance

The amount of time an insured must be disabled before receiving benefits is known as the
A. elimination period
B. grace period
C. benefit period
D. indemnity period

Rachelle was injured but is still able to perform some of the essential duties of her occupation. Regardless of income lost, Rachelle will receive 50% of the benefit for total disability for six months. Rachelle most likely has a
A. recurrent disability
B. partial disability
C. at-work disability
D. residual disability

Which of the following allows insureds to buy additional amounts of disability income insurance coverage at stated future times without having to provide proof of insurability?
A. Future increase option rider
B. Relation of earning to insurance provision
C. Cost of living adjustment rider
D. Rehabilitation benefit provision

All of the following are common exclusions found in disability income policies EXCEPT for losses arising from
A. living overseas
B. military service
C. a car accident
D. attempted suicide

Which of the following is the most important factor in underwriting disability income insurance?
A. The insured's marital status
B. The insured's home location
C. The insured's occupation
D. The insured's age

All of the following statements about short-term disability are true EXCEPT
A. short-term disability benefits are normally six to 24 months
B. short-term disability policies have short elimination periods
C. short-term disability policies have long elimination periods
D. short-term disability benefit amounts are generally 60% to 70% of the employee's compensation

All of the following define a disability EXCEPT
A. accidental death and dismemberment
B. residual disability
C. partial disability
D. recurrent disability

The benefit that pays for the insured to learn to work in a new occupation is known as
A. the lifetime benefit option
B. the cost-of-living benefit
C. the guaranteed insurability option
D. the rehabilitation benefit

The rider that provides additional benefits during the first 6 to 12 months of a claim is known as
A. the cost-of-living rider
B. the rehabilitation rider
C. the lifetime benefit rider
D. the additional monthly benefit rider

The elimination period may be thought of as
A. a time deductible
B. a dollar amount co-payment
C. a time co-payment
D. a dollar amount deductible

The longer the benefit period
A. the lower the policy's premium
B. the lower the policy's benefits
C. the higher the policy's benefits
D. the higher the policy's premium

Which definition of total disability is more favorable to the insured?
A. Own occupation
B. They are all the same in terms of benefits to the insured
C. Any occupation
D. All occupation

Which of the following generally is NOT
considered to be a presumptive disability?
A. Loss of use of any two limbs
B. Loss of speech and hearing
C. Total and permanent blindness
D. Loss of the dominant hand

Brandon injures his back working at a warehouse. Six months later, he is well enough to go back to work lifting boxes. Two weeks into working, however, he strains his back again and has to go back on bed rest.
This is an example of
A. a residual disability
B. a redundant disability
C. a recurrent disability
D. a reduced disability

Which of the following organizations would be most likely to be eligible for business overhead expense insurance?
A. A doctor's office
B. A law firm with 25 partners
C. A public library
D. A major multinational corporation

To protect the business owner, the elimination period for disability buy-sell insurance normally is
A. 6 months to 1 year
B. 1 to 2 weeks
C. 1 to 2 years
D. 3 to 6 months