Chapter 14 Disability Income Insurance
This flashcard set reviews the key features of individual disability income policies, including the role of the elimination period (acting like a deductible), the guaranteed insurability rider, and how benefits are paid in cases of death or fraud. Also included are real-world scenarios illustrating claims handling, benefit duration, and policy provisions.
in a disability income policy which of these clauses acts a deductible?
elimination period
Key Terms
in a disability income policy which of these clauses acts a deductible?
elimination period
bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. what kind of rider is this?
guaranteed insurability rider
V is insured under an individual disability income policy with a 30 day elimination period. on july 1 he is involved in an accident and temporarily diabled. he returns to work on december 1. how many months of benefit are payable?
4 months
T was insured under an individual disability income policy and was severely burned in a fire. as a result T became totally disabled. the insurer began making monthly benefit payments, but later discovered that the fire was set by T in what was described as arson. what actions will the insurer take?
the insurere will recind the policy, deny the claim and recover all payments made
M becomes disabled and is unable to work for 6 months. M dies soon after from complications arising from this disability. M has a disability income policy that pays $2000 a month. which of the following statements BEST describes what is owed to her estate?
earned but unpaid benefits
which of these statements concerning an individual disability income policy is TRUE
normally includes a elimination period
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| Term | Definition |
|---|---|
in a disability income policy which of these clauses acts a deductible? | elimination period |
bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. what kind of rider is this? | guaranteed insurability rider |
V is insured under an individual disability income policy with a 30 day elimination period. on july 1 he is involved in an accident and temporarily diabled. he returns to work on december 1. how many months of benefit are payable? | 4 months |
T was insured under an individual disability income policy and was severely burned in a fire. as a result T became totally disabled. the insurer began making monthly benefit payments, but later discovered that the fire was set by T in what was described as arson. what actions will the insurer take? | the insurere will recind the policy, deny the claim and recover all payments made |
M becomes disabled and is unable to work for 6 months. M dies soon after from complications arising from this disability. M has a disability income policy that pays $2000 a month. which of the following statements BEST describes what is owed to her estate? | earned but unpaid benefits |
which of these statements concerning an individual disability income policy is TRUE | normally includes a elimination period |
when a person returns to work after a period of total disability but cannot earn as much as he or she did before the disability, this situation | residual disability residual amount benefit is based on the proportion of income actually lost due to the partial disability taking into account the fact that the insured is able to work and earn income |
N is covered under an individual disability policy with a 30 day elimination period and a monthly benefit of $500. N is totally disabled for 3.5 months. Ns total disability received on this claim is | $1250 |
a disability elmination period is best described as a | time deductible |
in the event of an illness a ______ ______ policy would reimburse an insured for loss of earnings. | disability income |
when a person returns to work after a period of total disability but cannot earn as much as he or she did before the disability, this situation is called which of the following? | residual disability |
non occupational disability coverage is designed for | employees who suffer non work related disabilities since work related disabilities are covered by workers comp |
an individual disability income insurance applicant may be required to submit all of the follow information except | spouses occupation |