Alabama Life And Health Study Guide Graded A+

Disability income policies are designed to A. cover ongoing medical expenses plus medical bills. B. reimburse you only for accidents that occur off the job. C. pay you enough to maintain your current standard of living. D. pay your employer when you miss work. {Ans: C. pay you enough to maintain your current standard of living.}A man with an Accidental Death & Dismemberment (AD&D) policy having a Principal Sum of $100,000 and a Capital Sum of $50,000 loses a leg due to a blood clot which was not due to an accident. The policy will pay A. $0 Your Answer B. $50,000 C. $100,000 D. $150,000 {Ans: 0}The usual payment arrangement under a Preferred Provider Organization (PPO) contract is A. a negotiated fee-for-service. B. a flat monthly amount for each subscriber. C. reimbursement to the individual subscriber. D. all of the above. {Ans: fee for service}The "entire contract" law in Alabama says A. the policy alone is the entire contract. B. the policy and the application (or a summary of the application) constitute the entire contract. C. the policy and a copy of the initial receipt constitute the entire contract. D. the application and a copy of