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 elimination period is the waiting period an employee must satisfy after becoming disabled before disability benefit payments commence.

Question 2

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

Accepted Answer

Any-occupation definition

Answer

The any-occupation definition requires the claimant to be unable to perform the duties of ANY occupation for which they are reasonably suited by education, training, or experience — a much higher bar than own-occupation.

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

AD&D insurance pays a lump-sum benefit if the insured suffers accidental death, or a partial benefit (based on a schedule) for the loss of a limb, sight, hearing, or speech due to a covered accident.

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 guarantee issue amount is the maximum life insurance benefit an eligible employee can elect without submitting evidence of insurability, typically offered during initial enrollment.

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

A waiver of premium provision keeps the life or disability policy in force without requiring premium payments while the insured is totally disabled, as defined by the policy.

CEBS - Certified Employee Benefits Specialist Practice Test

CEBS - Certified Employee Benefits Specialist Practice Test

CEBS CEBS Disability & Life Insurance Benefits