FREE AND STUDY GAMES ABOUT CHAPTER 2 PART B

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FREE AND STUDY GAMES ABOUT CHAPTER 2 PART B

EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -29 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: what is social insurance supplement (SIS) used for?

Answer:

AK Social Security rideres is a supplement, add on or benefits payable to replace socail security disability or workers compensation programs or fill in any gaps or enhance financial assistance, security and overall coverage

Question 2: what are the conditions for presumptive disability benefits?

Answer:

dismemberment of one or mroe limbs, total permanent blindness, or loss of speech or hearing. some may require severance of limbs rather than loss of use.Question 3: What are the situations as to provide eligibility for social security riders or SIS?

Answer:

this feature comes into place when:

• the insured is eligible for Social Security but benefits haven't started yet,

• if the insured is denied Social Security coverage,

• or when the Social Security amount is less than what the rider offers.

Question 4: the three other conditions only applicable to group plans are.

Answer:

• minmum participation requirment of mployment for 30-90 days for coverages

• makes benefits supplements to any benefits received under workers comp

• may limit coverage to only nonoccupational

Question 5: which one of the definition of injury will provide a broader coverage?

Answer:

A policy that uses accidental bodily injury definition will provide broarder coverage

Question 6: Busienss disability buyout policy

Answer:

the buy sell agreement legally binding agreement as to how the business will pass between parites in the event that the owner dies or is disabled. has cash to fund the buyout, long elimination periods 1-2yr premium are taable and benefits are tax free.

Question 7: presumptive disability

Answer:

is a provision in the policy that qualifies the insured for full disability benefits under specific conditions regardless of if they can work or not.

Question 8: Benefits limitations

Answer:

is the amount of monthly benefits that is payable under the policy based on the percentage of the insured past earnings. basically they limit benefits based on average income before the disability

Question 9: Business overhead expense policy (BOE)

Answer:

if a small business owner becomes disable this helps cover costs of rent utilities and salaries but not owner income waiting period of 15-30days pays benefits for 1-2yrs premium is tax free benefits are taxable

Question 10: why do companies utilize benefit limitations?

Answer:

they do not reimburse indivdual for 100% or more of lose income because the insured will no longer have an incentive to return to work after diability.

Question 11: what is the purpose of a probationary period?

Answer:

to prevent people from buying disability insurancy policy right after they find out about a health issue that needs coverage very soon.

Question 12: what are the two types of injury definition in insurance?

Answer:

• accidental bodily injury: that the DAMAGE to body is unexpected and unintended

• accidental means: that the CAUSE of accident must be unexpected and unintended

Question 13: group VS. individual disability income policy based on benefits

Answer:

group benefits is based on a % of workers income, individual benefits is based on a flat amount,

Question 14: Benefit period

Answer:

is the length of time for the disability benefits payments to last for each disability after the elimination period. policies offer benefit periods of 1, 2, 5 year, ot the age of 65 or for a life time. the longer the benefit period the higher the premium.

Question 15: recurrent disability

Answer:

specifies period oftime during with the recurrence of an injury orillness will be considered a continuation of a prior disability

Question 16: Disability income insurance

Answer:

is the lost income if a person becomes disabled. you can get it indvidually or thru an employer.Question 17: when it comes to Disability income insurance policy what can result in a high premium?

Answer:

short elimination periods, long or forever lasting benefits periods

Question 18: group VS. individual disability income policy based on short term

Answer:

group plans provide max benefits period of 13-52 weeks (26 most common) and weekly benefits of 50-100% of individuals income individual plan has max benefit of 6 month- 2 year and is not renwable Question 19: What are the three types of disability income policies used for business?

Answer:

• business overhead expense policy

• key person disability

• disability buy- sell insurance

Question 20: How do companies make sure people are not making profit or taking advantage of disability income insurance?

Answer:

they do so by adjusting the payable amount based on any money recived from social security or workers compensation. As to encourage them to return to work as soon as they are cabable of doing so

Question 21: you will NOT recive diability benefits if..

Answer:

your elimnation period last longer than you disability. for example if you were rendered disabiled for 75 days but your elimation period if 45 days you will only be cominsated for those 30 day