Life and Health California Exam Disability Income Insurance

Question 1

The 'elimination period' in a disability income policy is best described as:

Accepted Answer

A waiting period after disability begins before benefits are paid

Answer

The elimination period is a time deductible—a specified number of days the insured must be disabled before disability income benefits begin.

Question 2

Under an 'own-occupation' definition of disability, benefits are paid when the insured:

Accepted Answer

Cannot perform the material duties of their own specific occupation

Answer

Own-occupation disability means benefits are payable if the insured cannot perform the duties of their specific occupation, even if they could work in another field.

Question 3

A disability income policy with a benefit period of 'to age 65' means:

Accepted Answer

Benefits are paid until the insured reaches age 65, if disabled that long

Answer

A benefit period 'to age 65' means the insurer will continue paying monthly disability benefits until the insured turns 65, as long as total disability persists.

Question 4

Which disability income policy rider pays an additional monthly benefit if the insured is disabled and requires assistance with activities of daily living?

Accepted Answer

Catastrophic disability rider

Answer

A catastrophic disability rider provides an additional benefit when a totally disabled insured also needs help with activities of daily living or has cognitive impairment.

Question 5

Disability income benefits received by an employee are generally taxable when:

Accepted Answer

The employer paid the premiums with pre-tax dollars

Answer

If the employer pays disability insurance premiums with pre-tax dollars, the benefits received by the employee are subject to ordinary income tax.

Life and Health California Exam Practice Test

Life and Health California Exam Practice Test

Life and Health California Exam Disability Income Insurance