Accident and Sickness Insurance Flashcards

What is the standard elimination period for most individual disability insurance policies in Canada?

Answer: 90 days

The standard elimination period for most individual disability insurance policies is 90 days, which is the waiting period before benefits begin.

Which type of disability definition provides the broadest coverage for the insured?

Answer: Own occupation

Own occupation provides the broadest coverage because it pays benefits if the insured cannot perform the duties of their specific occupation.

What does the 'recurrent disability' provision in a disability insurance policy address?

Answer: A disability that returns after a period of recovery

The recurrent disability provision addresses situations where the same disability returns after the insured has recovered and returned to work.

In Canadian accident and sickness insurance, what is the purpose of a 'coordination of benefits' clause?

Answer: To prevent over-insurance by reducing benefits when other coverage exists

Coordination of benefits prevents over-insurance by reducing benefits when the insured has coverage under multiple policies, ensuring total benefits do not exceed actual income.

What is the key difference between non-cancellable and guaranteed renewable disability insurance policies?

Answer: Non-cancellable policies guarantee both renewability and premium rates

Non-cancellable policies guarantee both the right to renew and that premiums will remain the same, while guaranteed renewable policies only guarantee the right to renew but premiums can increase by class.

Under Canadian insurance law, which of the following conditions is typically excluded from standard accident and sickness coverage?

Answer: Self-inflicted injuries

Self-inflicted injuries are a standard exclusion in accident and sickness insurance policies across Canada.