Disability Income And Related Insurance Study Guide Questions And Correct Answers

Underwriting for disability insurance is unique due to the type of risk involved. Which of the following situations illustrates this? A A construction worker pays a higher premium and receives a poorer classification of disability. B A stunt person pays a low premium and receives a superior classification of disability. C An attorney pays a higher premium and receives a poorer classification of disability. D A secretary pays a higher premium and receives a superior classification of disability. {Ans: A}Which of the following disability income policies would have the highest premium? A 15-day waiting period / 5-year benefit period B 15-day waiting period / 10-year benefit period C 30-day waiting period / 10-year benefit period D 30-day waiting period / 5-year benefit period {Ans: B}After the elimination period, a totally disabled insured qualified and started receiving benefits from his disability income policy that has a waiver of premium rider. What will most likely happen to the premiums paid into the policy during the elimination period? A Premiums will be retained by the company, but no further premium will be required for the duration of the disability. B Premiums will be prorated. C Premiums will be waived. D Premiums