test 18

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Author:
riosjuank
ID:
232693
Filename:
test 18
Updated:
2013-09-04 00:42:17
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health insurance
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Description:
test chapter 18
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  1. 1. Assume an insurer will issue a maximum monthly disability income benefit of $5,000, provided the totalof such benefits payable by all companies does not exceed 60 percent of the insured's monthly income. Tedearns $4,500 per month and has no existing disability income policy. The maximum disability income benefitthis insurer would issue Ted is

    A. $2,500
    B. $4,500
    C. $5,000
    D. $2,700
    D. $2,700
    (this multiple choice question has been scrambled)
  2. 2. Sidney has a monthly benefit of $2,500 for total disability under a residual disability income policy. If Sidney suffers a 40 percent loss of his pre-disability income, how much will his benefit be?

    A. $0
    B. $1,000
    C. $1,500
    D. $2,500
    B. $1,000
    (this multiple choice question has been scrambled)
  3. 3. Which of the following statements about elimination periods in disability income policies is NOT correct?

    A. Elimination periods help keep premiums down.
    B. An elimination period follows the start of a disability.
    C. Elimination periods may apply to disabilities due to sickness and not accidents.
    D. Benefits are not paid during an elimination period, but are paid retroactively to the beginning of the period if the insured remains disabled throughout the period.
    D. Benefits are not paid during an elimination period, but are paid retroactively to the beginning of the period if the insured remains disabled throughout the period.
    (this multiple choice question has been scrambled)
  4. 4. Benefit periods for individual short-term disability policies typically vary from

    A. 1 to 12 months
    B. 3 months to 3 years
    C. 6 months to 2 years
    D. 1 to 5 years
    C. 6 months to 2 years
    (this multiple choice question has been scrambled)
  5. 5. What is the initial period of time specified in a disability income policy that must pass, after a policy is in force, before a loss due to sickness can be covered?

    A. Temporary interval
    B. Preexisting term
    C. Probationary period
    D. Elimination period
    C. Probationary period
    (this multiple choice question has been scrambled)
  6. 6. Which of the following terms relates to disability income insurance?

    A. First-dollar
    B. Coinsurance
    C. Service basis
    D. Residual amount benefits
    D. Residual amount benefits
    (this multiple choice question has been scrambled)
  7. 7. Which of the following statements about waiver of premium in health insurance policies is NOT correct?

    A. It generally drops off after the insured reaches age 60 or 65.
    B. It exempts an insured from paying premiums during periods of permanent and total disability.
    C. It may apply retroactively.
    D. It normally applies to both medical expenses and disability income policies.
    D. It normally applies to both medical expenses and disability income policies.
    (this multiple choice question has been scrambled)
  8. 8. Which of the following is NOT a basis for occupational suitability when determining total disability?

    A. Job interest
    B. Experience
    C. Education
    D. Training
    A. Job interest
    (this multiple choice question has been scrambled)
  9. 9. Which defintion of total disability is more favorable to the insured?

    A. "Any occupation" is more favorable
    B. "Own occupation" is more favorable
    C. There is no way to determine from the information provided
    D. They are the same in terms of benefits to the insured
    B. "Own occupation" is more favorable
    (this multiple choice question has been scrambled)
  10. 10. Which of the following riders provides for changes in the benefit payable based on changes in the consumer price index (CPI)?

    A. guaranteed insurability rider
    B. Social Security rider
    C. cost of living adjustment rider
    D. waiver of premium rider
    C. cost of living adjustment rider
    (this multiple choice question has been scrambled)

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