Free Disability Income Insurance Practice Questions
North Carolina Life, Accident & Health exam — 36 practice questions.
Subtopics: Relation of earnings to insurance, Preexisting conditions in DI, Presumptive blindness, Purpose, Elimination period, Benefit period, Definition of disability, Residual disability, Probationary period, Presumptive disability, Recurrent disability, Any occupation, Business overhead expense, Disability buy-out, Cost of living adjustment, Social insurance supplement, Nonoccupational coverage, Waiver of premium, Future increase option, Disability benefit, Benefit amount, Total disability, Partial disability, Group disability, Social Security disability, Key employee DI, Occupational coverage
Read the Disability Income Insurance study guide
Sample questions & answers
1. Under North Carolina's relation of earnings to insurance provision, total monthly disability benefits will not be reduced below the lesser of the total benefits specified or:
$200 a month
When total loss-of-time benefits exceed the insured's monthly earnings (or two-year average), the insurer pays proportionately, but total benefits are not reduced below $200 a month or the sum of the specified benefits, whichever is less.
2. If a disability income insurer does not ask about medical history in the application, it may not deny a claim for a disability starting more than how long after coverage begins on the ground of a preexisting condition?
24 months
Without a medical-history application, the insurer may not deny claims for disabilities commencing more than 24 months after the effective date due to a preexisting condition, and may not use a look-back longer than 24 months.
3. Under North Carolina law, a disability insurer may exclude disability coverage for blindness only when the blindness:
Existed when the disability application was made
Insurers may not refuse coverage based on a policy's presumptive disability for loss of eyesight or hearing, but a disability insurer may except coverage for blindness or deafness that existed when the application was made.
4. Disability income insurance is designed to replace:
A portion of earned income lost when disability prevents work
Disability income pays periodic benefits to replace part of the earnings lost during a covered disability.
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Practice: Disability Income Insurance
Answer choices are shuffled every time, and every question comes with an explanation.
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.
