Lesson 5 disability income medical expense policies

the longer the benefit period in a disability income policy,

• the longer the elimination period

• the shorter the elimination period

• the lower the premium payment

• the higher the premium payment

Richard has a disability that only allows him to be able to work about half of the workweek that he used to work. He now makes 40% less pay then he used to make. If Richard has a $1000 disability benefit, the residual disability benefit that he will receive is

• $1000

• $500

• $2000

• $400

Which of the following can be used to fund an agreement to buy out the interest of a business owner or partner who becomes disabled and can no longer contribute to the business?

• Business owner expense policy

• business overhead policy

• buy-sell insurance

• key person disability insurance

Which of the following is the most important factor in underwriting disability income insurance?

• Premium payment

• benefit amount

• insured's occupation

• Policy issuance alternatives

Disability income plans pay a monthly amount to an insured to make up for lost earnings. This benefit is referred to as

• An additional monthly benefit

• a waiting period

• an indemnity

• a loss of income

A disability income policy that indemnifies a business for the loss of the service of an employee is called

• business overhead expense

• loss of service expense

• disability buy-sell insurance

• key person disability insurance

Which of the following is a refund provision option in disability income insurance?

• Relation of earnings insurance

• medical reimbursement benefit

• return of premium rider

• rehabilitation benefit

Jon has an accidental death and dismemberment (AD&D) rider. If Jon goes blind in one eye after an accident, how will he be paid.

• Jon will be paid the principal sum

• Jon will be paid back his premiums

• Jon will be paid the capital sum

• Jon will be paid the full benefit

All of the following statements regarding a recurrent disability are true except

• the insured does not have to wait to start receiving benefits

• this provision encourages employees to return to work without fear of losing benefits

• the insured is subject to a new elimination period

• the situation must occur after the insured returns back to work

Which of the following have a panel of physicians and hospitals under contract to provide health care services and generally cover 80-100% of the cost?

• health maintenance orgnaization

• fee-for-service plan

• preferred provider organization

• comprehensive medical expense plan