LLQP Accident and Sickness Insurance 4

Question 1

A policyholder is injured in a car accident and cannot work for 6 months. Which provision in a disability income policy determines the amount of benefit paid per month?

Accepted Answer

The benefit amount provision

Answer

The benefit amount provision specifies the monthly dollar amount the insured receives when totally disabled.

Question 2

Under a group accident and sickness plan, which of the following is typically NOT considered an eligible dependent?

Accepted Answer

Grandparent living in the insured's household

Answer

Grandparents are generally not recognized as eligible dependents under standard group health insurance plans.

Question 3

The 'any occupation' definition of total disability is considered more restrictive than the 'own occupation' definition because:

Accepted Answer

The insured must be unable to perform any job for which they are reasonably suited

Answer

Under 'any occupation,' benefits are only paid if the insured cannot work in any job suited to their education and experience, making it harder to qualify.

Question 4

An insured purchases a critical illness policy. She is later diagnosed with a covered condition. How are benefits typically paid under this type of policy?

Accepted Answer

As a lump-sum payment upon diagnosis

Answer

Critical illness policies pay a lump-sum benefit upon diagnosis of a covered condition, regardless of actual medical expenses.

Question 5

Which of the following statements about the 'pre-existing condition' exclusion period is CORRECT under individual accident and sickness policies?

Accepted Answer

It is a temporary period during which benefits for conditions existing before the policy are limited or excluded

Answer

A pre-existing condition exclusion is typically a time-limited period, not a permanent exclusion, after which coverage for those conditions may begin.

LLQP - Life License Qualification Program Practice Test

LLQP - Life License Qualification Program Practice Test

LLQP Accident and Sickness Insurance 4