CEBS Disability & Life Insurance Benefits Flashcards

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

Answer: The waiting period before disability benefits begin

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

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

Answer: Any-occupation definition

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.

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

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

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.

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

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

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.

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

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

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.

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

Answer: Engage in the interactive process to identify reasonable accommodations

The ADA requires employers to engage in a good-faith interactive process with the disabled employee to explore reasonable accommodations that would allow them to perform their essential job functions.