Key Concepts
Any Occupation - ("acc") - A definition of total disability that requires that for disability income benefits to be payable, the insured must be unable to perform any job for which he or she is "reasonably suited by reason of education, training, or experience."
Cost of Living Adjustment Rider - (COLA) - Provides for an automatic increase in benefits (typically tied to the CPI), offsetting the effects of inflation.
Elimination Period - Duration of time between the beginning of an insured's disability and the commencement of the period for which benefits are payable.
Guaranteed Insurability Rider - Arrangement whereby additional insurance may be purchased at various times without evidence of insurability.
Own Occupation - ("occ") - A definition of total disability that requires that in order to receive disability income benefits, the insured must be unable to work at his or her own occupation.
Partial Disability - Illness or injury preventing insureds from performing at least one or more, but not all, of his or her occupational duties.
Presumptive Disability Benefit - A disability income policy benefit that provides that if an insured experiences a specified disability, such as blindness, he or she is presumed to be totally disabled and entitled to the full amount payable under the policy, whether or not he or she is able to work.
Probationary Period - Specified number of days after an insurance policy's issue date during which coverage is not afforded for sickness. Standard practice for group coverages.
Residual Disability Benefit - A disability income payment based on the proportion of income the insured has actually lost, taking into account the fact that he or she is able to earn some income.
Total Disability - Disability preventing insureds from performing any duty of their usual occupations or any occupation for remuneration; actual definition depends on policy wording.
Waiver of Premium Rider - Provision exempting the insured from paying premiums after he or she has been disabled for a specified period of time, usually 90 days or six months in health policies.
Familiarize yourself with the Key Concepts in the Florida study manual, Unit 18.
