WorksheetsAccident & Sickness Modules
Total questions: 9
Worksheet time: 18mins
Jasvinder Singh, 51, is employed as a restaurant inspector with the City of Toronto. Every day he travels to inspect restaurants, completes the inspection reports, and follows-up on problem cases. He has a wife and five children to support on his salary of $65,700. The City provides a basic disability policy for Jasvinder with a sixmonth waiting period and a two-year benefit period. Jasvinder meets with his insurance agent to take out a policy that provides a waiting period of 31 days, and a benefit period of five years, and one that is guaranteed until he turns 60. Just three months after the policy is issued, Jasvinder changes jobs to become an inspector in one of Campbell's food processing plants. Despite the fact that his occupational classification indicates a greater risk in the new job, his premiums do not increase.
Which type of disability policy does Jasvinder have?
Non-cancelable and optionally renewable
Non-cancelable and guaranteed renewable
Guaranteed renewable
Optionally renewable
Dave McDowell teaches physics in a· prestigious private boys' school. He also . coaches the baseball team as an extracurricular activity (not considered part of his employment). His employer does not provide a group disability plan, but does provide worker's compensation. Dave, therefore, purchases an individual disability plan with a 6month waiting period (since workers' compensation will cover him prior to the six months), a 60% benefit and a residual benefit rider. His annual salary is $63,000. He earns another $850 each month from private tutoring. One day, during a baseball game, Dave slips in the mud on the side of the field, hits his head on the bleacher stand and fractures his skull. He is immobilized for the first four months and then returns to work at school on a part-time basis.
How much income will he receive during month five when he goes back to work one day a week?
$1,900.00
$1,050.00
$2,520.00
$2,740.00
Cindy Stewart is an agent with Just-Maybe Insurance. Today she is meeting with Eugene, the owner of Eugene's Arts & Craft Supplies. Eugene has been in business for over 18 years and provides teachers in the area with a place to buy and make supplies for their students. He has rented office space in the downtown so he is accessible to all areas of the city and has been so busy lately that he had to hire Carina to help him out. The business is Eugene's sole source of income and he is concerned about how he will manage to pay Carina, not to mention cover his office rent and expenses if he were to become disabled.
What should Cindy suggest that Eugene first consider purchasing?
Accident & Sickness Insurance
Key Person Disability Insurance
Business Overhead Expense Coverage
Disability Buy-Out Coverage
Hugo Hadley and his wife Pamela, are expecting their second child. Hugo is a lawyer and owns an individual disability policy to replace his income in case he became unable to work. When he purchased his policy, the agent recommended he add a waiver of premium and COLA to his policy.
What benefits will this add for Hugo if he were to become disabled?
After a waiting period he will not be required to pay premiums and the benefits would increase to keep up with inflation.
After a waiting period he will not be required to pay premiums and he will be able to buy more insurance without evidence of insurability.
The policy will waive the cost of rehabilitation and the benefits would increase to keep pace with inflation.
He will not be required to pay premiums from the first day of disability since he has the COLA rider.
The federal government provides a base of disability benefits for those who have contributed to the programs including El and CPP.
Which of the following statements is true?
El has a waiting period of 2 weeks; CPP disability has a waiting period of 4 months
El benefits will last for 6 months, CPP disability will last until Age 65
El benefit is equal to 55% of average earnings; CPP disability benefit is a percentage and is increased by how much contributions have been made and for how long
El benefits will increase once CPP benefits begin
Romero Chappell works as a Supervisor at an engineering company. He has a non-contributory group medical plan that includes dental and prescription coverage. His dental plan has a $75 deductible and an 80% co-insurance factor. His first claim of the year is $395.00 and 3 months later he claimed $210.00.
Which of the following statements is true?
All group plans are tax deductible for the employer and the benefits are taxable to the employee.
Any income he receives from his disability plan is taxable and his premiums are tax deductible on his personal income tax return.
The reimbursement from his dental plan is taxable to the employer and the premiums are tax deductible for the employer.
None of the above
Mark and Linda Tomaro have an individual accident and sickness with Great Lakes Life and Health Company that has been in force for seven years. -Linda took a nasty fall while walking to her car from the parking lot of her bank. Linda was rushed to the local hospital where she was diagnosed with a fractured hip requiring surgery and a period of five weeks convalescence. Based on her fall and the subsequent injury, Linda is no longer able to perform her job as a cable installer. She has taken a new job as a quality control specialist, watching the labeling of the bottles, for a beverage company.
Linda must...
Notify Mark's employer that she has a new job that is more dangerous
Notify Mark's employer that she has a new job in quality control
Notify Great Lakes that she has a new job that changes her morbidity rating
Make no notifications since one's occupation has no bearing on premiums charged for an accident and sickness policy
Cagney and Lacey have been considering insurance options for their father. He has been living on his own since their mother passed away two years ago.· Since then he has started cooking for himself. On the weekends he is actively involved in a fitness group and babysits his grandson in his spare time. However, for the past few months, Cagney and Lacey have been a bit concerned about their father. During several conversations he has forgotten completely what they were talking about. Last week, they had to rescue him from the mall since he couldn't find his way back to his house. To top it all off they found his electric razor left on all day while he was out. They want to get him help but are not sure if his long-term care policy would pay a benefit. They ask for your opinion.
Is it likely his policy would pay a benefit?
No since he has the ability to perform 2 of the 5 activities of daily living
No since he doesn't have one of the four major critical illness covered in the policy
Yes since it is apparent he is suffering from Alzheimer's
Yes since he is suffering from cognitive impairment.
Tracey comes from a large family. Her parents each have nine siblings, all of which are in their 80s and still living. She does not have any children, nor does she have any debt. She has watched many of her aunts and uncles get older and become dependent on others to care for them. Her uncle Randolph's children even take turns coming over to dress, bathe, and feed him every day. Since Tracey doesn't have any children, she is concerned about growing old and not being able to take care of herself.
What type of insurance should she consider?
Life insurance
Critical illness insurance
Long-term care insurance
A & S insurance
