Disability Insurance: Concepts and Coverages Evaluation (OH 71351)

Before the concept of residual disability benefits was introduced in the 1970s, all disability benefits _____ when the injured employee was able to perform any type of work.

The primary purpose of disability insurance is to:

Irma submitted a claim under her individual disability policy and it was denied. Which of the following conditions caused Irma’s disability?

Ed became disabled on February 6 and, after his _____ of 90 days, he became eligible for monthly benefits under his disability policy.

All the following are common elimination periods in a disability insurance policy, EXCEPT:

A disability policy has an elimination period of 60 days and the insured becomes disabled on March 1. When will disability payments begin?

The end of the elimination period in a disability policy triggers _____.

Ellen’s disability policy has a 15-month benefit period. If she was disabled in March of last year and returns to work September of this year, when will her disability benefits end?

What definition of total disability does Jose’s policy use if he is considered totally disabled because he can’t perform the material and substantial duties of his regular job?

If Dr. Patel’s disability insurance policy allows him to work as a consultant while collecting total disability benefits, what definition of total disability does his policy include?

Before Ed became a registered nurse, he worked for 10 years as a car salesman. When Ed becomes disabled and can no longer work as a nurse, his policy’s _____ definition of total disability would not pay benefits if he can still work as a car salesman.

Your client is able to return to work after a disability, but can only do so part-time and can only early 50% of his pre-disability income. His policy’s _____ disability benefits provision will make payment during this period of disability.

Consumers are LEAST likely to insure which of the following?

All the following are requirements of a recurrent disability, EXCEPT:

Laurie wants to reinstate her disability insurance policy, which lapsed. Which of the following does NOT apply?

Ivan’s disability insurance policy is noncancellable and guaranteed renewable. This means the insurer:

Mr. Jameson’s disability insurance policy is optionally renewable. Which of the following actions may his insurer take at renewal:

When a disability policy’s waiver of premium provision applies, premiums are waived until the earliest of 3 conditions. Which of the following is NOT one of those conditions?

Which of the following circumstances would trigger the non-disabling injury benefit on Sheila’s disability insurance policy?

Mr. Chen’s disability resulted from the recurrence of a back injury he suffered 3 months before his policy began. The policy will not pay disability benefits because:

Which of the following is NOT excluded in a disability insurance policy?

Mrs. Elliott is buying a new disability insurance policy and would like the opportunity to purchase additional amounts of monthly insurance without having to buy new policies in the future. You suggest that Mrs. Elliott _____.

One of the most important aspects of the Cost of Living Adjustment rider is that it only provides benefit increases _____.

Stephanie’s risk of disability is much greater than her risk of death is at what point in her life?

Social Insurance Offset riders are designed to offset other disability benefits received using any of the following methods, EXCEPT:

Margot purchased the Social Security Supplement rider on her disability insurance policy because it _____.

Eligibility for Social Security Disability Insurance benefits requires an individual to have worked long enough in covered employment. What is “covered employment?”

Luc began working on January 1. His employer withholds payroll taxes payable to Social Security under FICA. At the end of March, if his total earnings for the quarter exceed a certain amount, Luc will have earned one _____ under Social Security.

Social Security’s definition of disability requires all the following, EXCEPT:

Mrs. Jones is not eligible for Social Security Disability Insurance because:

Celeste suffered a heart attack and is unable to work. The SSA has deemed her disabled and eligible for disability benefits, to which a _____ waiting period applies.

Which of the following is NOT one of the major reasons SSDI applications are initially denied?

Bella, a hairdresser, is eligible for workers’ compensation disability benefits because her disabling injury took place when she was _____.

In addition to providing benefits for permanent total disability, workers’ compensation benefits also provide for all the following types of disability benefits, EXCEPT:

Which of the following individuals is the LEAST likely candidate to buy a disability insurance policy?

Rocco is a roofer who suffered a permanent total disability when he fell off a building. His ____ benefits are primary and will make payment first.

Five states and Puerto Rico provide state cash sickness, or nonoccupational disability, benefits. Which of the following statements BEST describes these benefits?

Andrei is the owner of a business and is 100% personally responsible for the business, including its assets, liabilities, and debits. The legal structure of Andrei’s business is:

Thelma and Louise are the only owners of a business. If one of them dies, the business terminates–unless they have a written business agreement. The legal structure of this business is:

Morgan’s business is being established by state law and can live in perpetuity of for a set period of time. He must decide if he is the only person to own stock in the business or if other people will also own stock. The legal structure of Morgan’s business is:

Donald and Doris of the owners of their business, and are referred to as members. Neither is personally responsible for the business’ losses, liabilities, or debts. The legal structure of this business is:

_____ disability insurance is designed to provide coverage for individuals who provide services that generate a great deal of income for themselves and their businesses.

Instead of replacing lost income, the _____ policy makes payment for certain types of ongoing expenses, at certain limits, when an owner becomes disabled.

All the following are examples of covered expenses in a business overhead expenses policy, EXCEPT:

What type of business disability policy has a maximum benefit period of 24 months?

Eleanor earns $5,000 per month. When an insurance company issues a disability insurance policy to Eleanor, it will issue a monthly benefit of _____.

Max and Irene are business partners. They have funded their disability buyout agreement with life insurance. Each has purchased a policy on the life of the other per a _____ agreement.

ABC Travel has purchased a disability insurance policy on the lives of each of its owners to fund a buyout agreement. What type of buyout agreement does ABC Travel have in place?

Disability buyout insurance is usually issued with a _____ elimination period.

Which of the following is NOT a reason to buy a key person disability insurance policy?

Kristen owns an insurance agency. On which of her employees is she the MOST likely to purchase a key person disability insurance policy?

Group insurance can be sold to all of the following groups, EXCEPT:

The premiums for group insurance are _____ they are for most individual policies because the insurer’s risk of loss is spread among a large number of people.

Most employees must be continuously employed for a(n) _____ period before becoming eligible from group disability coverage.

If Mr. Sterling’s employer offers a short-term group disability plan, how long is the benefit period?

Hertz Manufacturing has a 7-day actively at work requirement in its group long-term disability plan. Which of the following employees was NOT “actively at work” when disabled?

Marta couldn’t run her accounting firm without the assistance of her office manager. She is considering the purchase of _____ disability insurance to protect the business if the office manager becomes disabled.

Ace Insurance Company will consider all the following when determining the maximum monthly disability benefit for which an applicant is eligible, EXCEPT:

All the following are considered earned income, EXCEPT:

All the following are considered UNEARNED income, EXCEPT:

Mr. Xavier’s income fluctuates from year to year. How will a disability insurance underwriting department determine the income to use when determining the maximum monthly benefit he is eligible for?

If Mr. Stanhope is a field underwriter, what is his occupation?

Of all the information provided on a disability insurance application, _____ forms the basis of the rate class upon which the policy and its premiums are determined.

After reviewing Ilse’s disability insurance application, the underwriter offered to issue the policy with a 25% extra premium charge because of what factor?

The occupational class of a disability policy is based upon all the following, EXCEPT the applicant’s:

Gustavo pays the premiums for his own disability insurance policy. When he receives disability benefits, how will they be taxed?

Blanche’s employer paid all costs of her short-term disability policy. When she receives benefits after becoming disabled, how will her benefits be taxed?

Jack and Ted are business partners who purchased _____ coverage so they can purchase the other’s share of the business if one of them becomes disabled.

What type of disability policy allows a business to deduct the premiums as a business expense?

Mrs. Yamaguchi applies for disability insurance and the insurance company feels she poses a risk the insurer is not willing to assume. What action will the insurer take after making it’s decision?

Mr. Spellman was appointed as a producer by Southern Mutual Insurance Company. When he is selling disability insurance to consumers, for whom does Mr. Spellman act as a fiduciary?

Lauren made a false statement about a fellow producer, and she did so maliciously with the deliberate intention of causing reputational harm to the other producer. What unfair trade practice did Lauren commit?

Sergio gave Amanda tickets to a basketball game so she would buy a disability insurance policy from him. This unfair trade practice is referred to as:

Unfair practices meet all the following criteria, EXCEPT they:

Marco and his business partner purchased business overhead expense coverage. What is the maximum length of disability covered by the policy?

Most disability insurance policies cover which of the following?