Free Disability Income Insurance Practice Questions
Vermont Life, Accident & Health exam (series 14-29) — 40 practice questions.
Subtopics: Any occupation definition, Benefit limits, Waiver of premium, Nonoccupational coverage, Partial disability, Credit disability, Guaranty association, 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, Future increase option, Disability benefit, Benefit amount, Total disability, Group disability, Social Security disability, Key employee DI, Occupational coverage
Read the Disability Income Insurance study guide
Sample questions & answers
1. A disability income policy using an 'any occupation' definition of total disability is generally:
Stricter, paying only if the insured cannot work in any suitable job
An any-occupation definition is stricter, requiring inability to work in any job for which the insured is suited, making benefits harder to qualify for.
2. Insurers limit individual disability income benefits to a percentage of earned income mainly to:
Reduce malingering and keep an incentive to return to work
Capping benefits below full income reduces moral hazard and preserves the insured's incentive to return to work.
3. The waiver of premium feature in a disability income policy means that during a covered disability:
The insured need not pay premiums while disabled
While the insured is disabled and receiving benefits, the waiver of premium feature keeps the policy in force without premium payments.
4. A nonoccupational disability policy covers disabilities that:
Occur off the job, since on-the-job injuries fall under workers' compensation
Nonoccupational coverage applies to off-the-job disabilities, because on-the-job injuries are handled by workers' compensation.
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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.
