CEBS CEBS Disability & Life Insurance Benefits

Question 1

What is the elimination period in a short-term disability (STD) or long-term disability (LTD) policy?

Accepted Answer

The waiting period before disability benefits begin

Answer

The maximum duration of benefit payments

Answer

The percentage of income replaced by the policy

Answer

The period after which pre-existing conditions are covered

Question 2

Which definition of disability is more restrictive and harder for claimants to satisfy in LTD policies?

Accepted Answer

Any-occupation definition

Answer

Own-occupation definition

Answer

Social Security disability definition

Answer

Gainful employment definition

Question 3

What is AD&D insurance, and when does it pay a benefit?

Accepted Answer

Accidental Death and Dismemberment — pays if the insured dies or loses a limb/function due to a covered accident

Answer

Additional Death and Disability — supplements Social Security disability income

Answer

Advance Death and Deferment — allows pre-death withdrawals from life insurance

Answer

Accelerated Death and Dismemberment — pays for terminal illness diagnosis

Question 4

In a group term life insurance plan, what does the term 'guarantee issue amount' refer to?

Accepted Answer

The amount of coverage available without requiring evidence of insurability (EOI)

Answer

The maximum death benefit the insurer will ever pay

Answer

The employer's maximum contribution toward premiums

Answer

The minimum benefit payable to any beneficiary

Question 5

What is a 'waiver of premium' provision in a group life or disability insurance policy?

Accepted Answer

Premiums are waived (not owed) while the insured is totally disabled

Answer

The employer pays all premiums so the employee owes nothing

Answer

The insurer waives the deductible in case of catastrophic loss

Answer

Premiums are reduced for non-smokers and healthy employees

Question 6

Under the ADA, what obligation does an employer have when an employee's disability may affect their return to work after a leave?

Accepted Answer

Engage in the interactive process to identify reasonable accommodations

Answer

Terminate the employee after FMLA leave expires

Answer

Reassign the employee to a lower-paying role automatically

Answer

Require the employee to use all accrued PTO before returning