Free Disability Income Insurance Study Guide
Idaho Accident & Health exam — Disability Income Insurance.
The national guide covers disability income basics: own-occupation versus any-occupation, elimination and benefit periods, residual and recurrent disability, and waiver of premium. Idaho sets minimum standards for disability income policies in IDAPA 18.04.08.036. It also regulates credit disability insurance (Idaho Code chapter 41-23; IDAPA 18.03.05).
National concepts in brief
- The elimination period is the wait before benefits start. The benefit period is the longest time benefits are paid.
- Own-occupation definitions favor the insured more than any-occupation definitions.
- A recurrent disability clause treats a relapse as the same claim.
Idaho minimum standards for disability income
| Standard | Idaho rule |
|---|---|
| Benefit period | At least three months |
| Elimination period | No more than one-fourth of the maximum benefit period, and never more than one year |
| Accident timing | The policy may not require the disability to begin less than 30 days after the accident |
| Definition of disability | Activities of daily living may not be used to define total or partial disability |
| Social Security increases | Benefits may not be cut because Social Security or similar benefits go up during a benefit period |
| Recurrent disability | The policy may not require recurrences to be separated by more than six months (IDAPA 18.04.08.030) |
| Notice to Buyer | Printed on the first page in contrasting color or bold type |
Other Idaho rules:
- Creditor protection: disability insurance proceeds are exempt from the debts of the insured and the beneficiary, unless the policy says otherwise (Idaho Code 41-1834).
- Relation of earnings to insurance: the optional clause can't reduce total monthly benefits below the lesser of $200 or the sum of the benefits (Idaho Code 41-2123).
Credit disability
- What it is: credit disability insurance makes the debtor's loan payments while the debtor is disabled (Idaho Code 41-2304).
- Term: it is written only on the term plan and may run no more than 15 days past the scheduled maturity of the debt (Idaho Code 41-2305, 41-2307). Loans longer than 15 years are outside the chapter.
- Definition of disability: for the first 12 months, inability to do the debtor's own occupation. After that, any occupation the debtor is reasonably fitted for (IDAPA 18.03.05.016).
- Preexisting conditions: may be excluded only if treated in the six months before coverage and causing a loss within six months after it.
- Choice of insurer: the debtor may use existing coverage or any authorized insurer (Idaho Code 41-2313).
- Evidence of coverage: coverage is shown by a policy or certificate delivered to the debtor (Idaho Code 41-2308).
Common exam traps
- Elimination period limit: no more than 1/4 of the benefit period, and no more than 1 year.
- Benefit period: at least 3 months.
- ADLs can't define disability in disability income policies.
- Credit disability uses an own-occupation definition for 12 months.
Practice Disability Income Insurance questions All Accident & Health topics
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
