CE 115, PART 8

Table of Contents

PART 8—CLASS QUIZ

Circle your responses:

T	F	1. Claims data show that for persons between the ages of 25 and 65 the probability of death is lower than the probability of being disabled for a 90-day period.
T	F	2. Persons who lose their jobs as a result of a work-related injury can apply for unemployment compensation.
T	F	3. Partial disability is defined as "the ability to perform the duties of an occupation other than the individual’s regular occupation."
T	F	4. Under most disability income policies the first benefit payment is made 30 days after the end of an elimination period.
T	F	5. Benefits paid under social security riders to disability income policies terminate at age 65.
T	F	6. To minimize fraudulent claims, insurance companies limit the benefit level of a disability income policy to an amount equal to a person’s predisability gross income.
T	F	7. Long-term care insurance is designed to supplement benefits payable under medicare for custodial nursing home care.
	F	8. A policy that provides coverage for at least a one-year stay in a nursing home facility can be classifgied as a long-term care policy.
T	F	9. The NAIC model law requires that long-term care policies provide the same level of benefits for custodial care as they do for skilled care.
T	F	10. The NAIC model for long-term care policies limits the exclusion for preexisting conditions to 6 months prior to the issuance of the policy.
T	F	11. An insurance company can increase the premium rate for a guaranteed renewable class of policies only if actual claims experience is higher than assumed claims experience.
T	F	12. A benefit paid for a nursing home stay under a life insurance policy results in a decrease in that policy’s death benefit.

1-T, 2-T, 3-F, 4-T, 5-T, 6-F, 7-F, 8-T, 9-T, 10-T, 11-T, 12-T