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Lesson 14 Quiz

The following quiz is provided for your information to help you measure your retention level on the material covered within this lesson. It is not graded. Only the final examination is graded.

Answer or complete each question to the best of your knowledge and click on the "Check your answer" button. If your answer is incorrect, you will be instructed where to find the correct answer. It is not necessary to repeat the quiz if you exit this page; however, your answers will not be saved once you exit. This feature is provided for future practice purposes.

1
Purpose of Disability Coverage

Disability provides an income stream for an individual who is unable to continue working due to accident or illness. However, under _______ disabled does not qualify for benefits.

a) 20%
b) 30%
c) 40%
d) 50%
CORRECTTRY AGAIN (Lesson 14.1)
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2

Insurance companies define disabilities in two ways depending upon whether the individual is unable to perform the job he was performing before the disability or illness occurred () or if the disabled person is unable to perform any type of work ().


Word bank: acc, occ

Insurance companies define disabilities in two ways depending upon whether the individual is unable to perform the job he was performing before the disability or illness occurred (occ) or if the disabled person is unable to perform any type of work (acc).

Lesson 14.1.1Check your answer

3
Calculating Benefits

The normal amount of income that can be replaced by a long-term disability policy is _______.

a) 60%
b) 50%
c) 40%
d) 30%
CORRECTTRY AGAIN (Lesson 14.2)
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4

Disability policies are usually noncancelable.

a) True
b) False
CORRECTTRY AGAIN (Lesson 14.2)
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5
Policy Provisions

In a disability income policy, the presumptive disability provision allows that if a person suffers from the following disability, they are "presumed" to be totally disabled and are entitled to receive full policy benefits regardless of whether he/she is able to work at any job.

a) Blindness
b) Deafness
c) Loss of two or more limbs
d) Any of the above
CORRECTTRY AGAIN (Lesson 14.3)
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6

Match the following disability income insurance policy provisions with their respective benefits.

a) The time immediately following the accident when benefits are not yet payable.
b) The length of time benefits can be payable to a disabled insured; classified as short-term or long-term.
c) The time period after an accident that if an injury manifests from an earlier accident, an insurer will cover it.
d) The time period after a relapse for which the disabled may need additional coverage and may receive it without having to wait for the elimination period to lapse.
a) Elimination Period Provision

b) Benefit Period Provision

c) Delayed Disability Provision

d) Recurrent Disability Provision

Lesson 14.3
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7

Dee has been a writer for the firm for years and she suffers an accident which results in the loss of both legs. She can still perform her job as a writer but, because of the severity of her condition, it is presumed that she is totally disabled. This is called ____________ disability.

a) total
b) partial
c) presumptive
d) accidental
CORRECTTRY AGAIN (Lesson 14.3.1)
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8

The probationary period in a disability income policy applies to sickness only, not accidents.

a) True
b) False
CORRECTTRY AGAIN (Lesson 14.3.2)
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9
Policy Riders

Match the following disability income insurance riders with their respective benefits.

a) The insured may be exempt from making premium payments during the period of total disability.
b) Provides extra income when social insurance benefits are not being received by the insured or if the benefits are being received in an amount less than estimated and expected in the rider.
c) Once a year (usually on the anniversary date of disability) the benefit amount is modified to reflect changes in the CPI.
d) Allows the insured the opportunity to purchase additional coverage during the company's specified enrollment periods without having to provide proof of insurability.
a) Waiver of Premium Rider

b) Social Security Rider

c) Cost of Living Adjustment Rider

d) Guaranteed Insurability Rider

Lesson 14.5
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10

The cost of living adjustment rider is geared toward adjusting the benefit according to an individual's current living conditions, after disability benefits have begun.

a) True
b) False
CORRECT - CONGRATULATIONS on completing Lesson 14. Now complete the Florida study manual Chapter 18 Questions for Review.TRY AGAIN (Lesson 14.5.3)
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