Disability Insurance: Concepts and Coverages FINAL EXAM (NE 6000168536)

Irma submitted a claim under her individual disability claim 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:

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

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?

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.

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

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?

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 _____.

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?”

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

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.

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:

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.

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:

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:

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.

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

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.

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

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 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?

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?

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?

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:

In most cases, disability insurance policies define an “injury” as _____.

Which of the following conditions is NOT likely to trigger presumptive total disability benefits?

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