Deck 2: Health: Disability

Question 1

Which of the following is not a consideration when determining disability income needs?

A)Retirement plan maintenance
B)Long-term disability coverage
C)Mortgage refinancing
D)Minimum income needs

Answer 1

Mortgage refinancing

Question 2

What is not an alternative to disability income insurance?

A)Savings accounts
B)Borrowing money
C)Liquidating assets
D)Investing in stock options

Answer 2

Investing in stock options

Question 3

Why isn't asset liquidation a good alternative to disability income insurance?

A)Market price fluctuations
B)Takes time to receive money
C)Money is available quick
D)Penalties and fees

Answer 3

Market price fluctuations

Question 4

What is disability income insurance?

A)A contract that pays monthly benefits for total disability
B)A contract that pays benefits as a percentage of income
C)A contract that pays to the beneficiary upon the death of the disabled
D)A contract that makes payments in the event of a total disability

Question 5

What is a probationary period?

A)A period when the extent of the disability is determined
B)A period during which no benefits will be paid
C)A period allowed for late payments
D)A period during which medical exams are considered as part of the application

Question 6

What is the elimination period?

A)The period at the end of the policy term when benefits are expired
B)The period at the beginning of the policy term
C)A grace period for late payments before the policy is cancelled
D)A period at the beginning of the disability prior to benefits being paid

Question 7

What is the benefit period?

A)Amount of days before benefits are paid
B)Amount of time benefits continue after policy expires
C)Amount of time benefits are paid
D)Amount of benefits paid

Question 8

Bob is in an accident that leaves him totally disabled. He is no longer able to work in his chosen field, but he is able to work. What type of disability would this be?

A)Own occupation
B)Any occupation
C)Loss of earnings
D)Loss of income

Question 9

Fred is on the losing end of a pedestrian versus vehicle encounter. He is hospitalized and paralyzed from his chest down. The prognosis is positive for Fred to walk again someday, however he is unable to earn a living. What type of total disability would this be?

A)Own occupation
B)Any occupation
C)Loss of income
D)Loss of service

Question 10

Sarah has contracted the roundworm trichinella spiralis from eating undercooked pork. The larvae cysts have invaded her muscles, including the brain and lungs. Because the cysts can remain viable for years she will continue to have muscle weakness and pain. The cysts in her brain have encephalitis which prevents her from being able to hold down a regular job and confines her to the house while she is medically treated. This type of disability is referred to as:

A)Non-occupational disability
B)Occupational disability
C)Any occupation disability
D)Medically defined disability

Question 11

As part of her organic local food support, aspiring chef Laura purchases canned vegetables from a roadside "farmer." Prior to sharing her creations with friends and family, Laura receives a diagnosis of clostridium botulinum, the bacteria that causes botulism. Laura is confined to the hospital on a breathing apparatus and is having nervous system problems. Although the prognosis is good, Laura will be unable to work during recovery. What type of disability is this?

A)Partial disability
B)Residual disability
C)Recurrent disability
D)Temporary disability

Question 12

Sasha loses the use of both hands in a freak fishing accident. Because she is a sculptor by training, she will no longer be able to continue to make money. Which type of disability would this most likely be?

A)Presumptive disability
B)Partial disability
C)Temporary disability
D)Residual disability

Question 13

Joseph works in a saw mill that regularly fails safety inspections. After one citation, Joseph gets caught in a saw and loses his hand in the machine. Joseph returns to work and slips on saw dust. Unable to grasp at the rail because he lost his hand, Joseph ends up breaking his leg. What type of disability would cover this?

A)Temporary disability
B)Partial disability
C)Residual disability
D)Recurrent disability

Question 14

George is assisting in moving his buddies to their new home. During the move, George slips on the ice-covered steps and fractures his arm. The insurance company declines the claims based on the nature of the accident. George's policy most likely includes:

A)An accidental means definition of accidental
B)An accidental bodily injury definition of accidental
C)A non-confining definition of accidental
D)A confining definition of accidental

Question 15

On average, how long do most Long-Term Disability policies provide benefits?

A)Up to 2 years
B)Up to 5 years
C)To age 55
D)To age 65

Question 16

What is the purpose of the rehabilitation benefit?

A)To provide physical therapy to reduce disability
B)To provide vocational training to prepare for new occupation
C)To provide additional disability income
D)To provide lifetime benefits to the disabled

Question 17

What is the purpose of the future increase option?

A)To allow the insured to have more income during disability
B)To allow the insured to increase options on the disability coverage package
C)To allow the insured to purchase additional disability income protection
D)To allow the insured to reduce premiums over a longer term

Question 18

What is the purpose of the lifetime benefit option?

A)To extend the benefit period beyond 65 to the lifetime of the insured
B)To extend the benefit period to age 65
C)To extend the option to increase benefits
D)To extend the vocational training benefits

Question 19

What benefit pays a regular total disability benefit during the elimination period when the insured is hospitalized?

A)Offset rider
B)Non-disabling injury rider
C)Cost of living benefit
D)Hospital confinement rider

Question 20

Who should purchase a business overhead expense policy?

A)Large businesses
B)Medium businesses
C)Small businesses
D)International businesses

Question 21

What benefit provides payment of medical expenses incurred in non-disabling accidents?

A)Impairment Rider
B)Supplemental Rider
C)Non-disabling Injury Rider
D)Injury Rider

Question 22

Disability is defined in two separate ways. Which one of these is more beneficial to the insured?

A)Own occupation
B)Any occupation
C)Benefits are the same for both options
D)It would depend on the insured situation

Question 23

When a person essential to the operation of a business becomes disabled, what type of coverage pays monthly benefits to cover expenses?

A)Business overhead expense
B)Key person disability insurance
C)Disability buy-sell insurance
D)Disability reducing term insurance

Question 24

In the event an owner is disabled and unable to continue to run the business, what disability insurance option is available?

A)Disability buy-sell insurance
B)Disability reducing term insurance
C)Disability rider insurance
D)Business overhead expense

Question 25

What is the purpose of a disability reducing term?

A)Provide reducing term coverage for business owners
B)Provide reducing premium coverage for businesses
C)Provide monthly benefits to cover monthly financial obligations
D)Provide monthly benefits to cover monthly medical expenses during disability