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AZ Disability Income
| What is the goal of Disability Income Insurance? | to provide insurance to the insured if they incur a loss of income due to disability |
| Three limitations of Disability Income Insurance. | must meet insurers definition of "disabled", benefits limited to a percentage of insured's income prior to disability, usually require insured to be under physician care or confined to the house. |
| Own occupation means what? | unable to perform duties associated with insured's occupation, based on education, training, and experience |
| Any occupation means what? | only provides benefits if the insured can not perform duties associated with their occupation in any form or reduced capacity |
| Name the type of policy that replaces a percentage of income lost due to a qualifying accident or sickness. | Income Replacement Policy |
| Does an income replacement policy require a period of total disability? | NO |
| Is an income replacement policy written with the "any occupation" or "own occupation" definition? | Any Occupation |
| A provision that states which conditions automatically qualify the insure for full disability coverage. | Presumptive Disability |
| Loss of use of 2 limbs, total & permanent blindness, loss of speech, and/or loss of hearing qualifies the insured for which type of disability? | Presumptive Disability |
| Accidental Bodily Injury means what? | body is damaged unexpectedly & unintentionally |
| What is the definition of Accidental Means? | cause of the accident is unexpected and unintentional |
| In insurance terms what is the definition of illness? | sickness or disease that occurs at least 30 days after the policy is in force or any time thereafter |
| How frequently must a Basic Total Disability Plan pay benefits? | no less than monthly |
| If an insured has a long Elimination Period what will that do to their premium? | lower premium |
| If an insured has a longer Benefit Period what will that do to their premium? | higher premium |
| Which definition is more liberal, Own Occupation or Any Occupation? Therefore providing a better benefit for the insured. | Own Occupation |
| Income Benefits are limited to a percentage of one's income at the time of application to prevent what? | over insurance |
| What is the period of time imposed on the insured from the onset of the disability until benefit payments commence? | Elimination Period |
| Occupational Coverage covers the insured while on or off the job. TRUE or FALSE | True |
| Non-Occupational Coverage covers only when on the job. TRUE or FALSE | False |
| When an insured returns to work but is unable to perform at the same level prior to disability? | Residual Disability |
| What pays the difference between prior income and current income? | Residual Disability |
| Partial Disability is what? | insured is unable to perform one or more duties of one's own profession |
| COLA stands for what? | Cost of Living Adjustment Rider |
| What is the purpose of COLA? | protects insured's benefit payments against inflation |
| At what percent will COLA usually go up | 5% |
| What expenses will a Medical Reimbursement Benefit Rider pay? | medical expenses when not totally disabled |
| A Return of Premium Rider does what? | provides a refund of a percentage of premiums at certain times (insurer may offer to refund 80% of the excess of premiums paid over claims) |
| Probationary Period is another type of waiting period. What happens with benefits during this time? | waiting period from the policy issue date during which benefits will not be paid for illness-related disabilities |
| Which period of time, Probationary or Elimination, only applies to sickness? | probationary |
| What is the purpose of the Probationary Period? | to prevent adverse selection against the insurer |
| When would a Cash Surrender Value be available to a policy owner? | at the end of the contract |
| 4 types of coverage under Worker's Comp | medical benefits, income benefits, death benefits, rehabilitation benefits |
| SIS stands for what? | Social Insurance Supplement |
| An Additional Monthly Benefit is provided for how long? | one year |
| Which amount is paid for death or major disabilities (loss of 2 limbs, sight in both eyes, speech or hearing) | Principal Sum |
| Capital Sum is what? | percentage paid for partial disability |
| This benefit covers a % of costs associated with retraining to return to work? | Rehabilitation Benefit |
| Who is covered in a Key Employee Disability | an important person in the company, helps with hiring new replacement and lost income |
| What in the benefit amount based on in a group disability plan? | % of worker's income |
| With a Guaranteed Insurability Rider an insured can increase the benefit levels without doing what? | showing proof of insurability |
| With a hazardous occupation the insured will typically pay a higher what? | premium |
| What is the max benefit period for Short Term Disability Group Plans | 6 months to 2 years |
| With a Group Disability Plan typically employees must have worked for how long before becoming eligible for coverage | 30-90 days |
| Lower wage employees are usually limited to what % of monthly wage in Long Term Disability Plans | 66 2/3% |
| Who owns the contract in a Key Employee Disability Plan? | the business |
| With Social Security Benefits who is considered to be fully insured | someone who has earned 40 quarters (10 years) |
| A person who has earned 6 credits during the 13-quarter period is considered partially or fully insured with Social Security Benefits | partially ionsured |
| How long is the waiting period with Social Security Disability Benefits | 5 months |
| Disability Income policies are valued contracts. The amount of benefit that the insurance company will issue is based upon the applicant's net earned income. This is to prevent what? | malingering |
| How is disability defined under Social Security? | inability to engage in any substantially gainful activity by reason of a medically determinable physical or mental impairment that has lasted or is expected to last 12 months or result in an early death |
Created by:
jgray2015
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