Long term care and disability income insurance policy terms tested on state insurance licensing exams.
30 cards · basic cards · AI-written, checked twice. Edit anything.
- What is the elimination period in a disability income policy?
- The waiting period before benefits begin after a covered disability occurs
- What does the benefit period specify in long-term care insurance?
- The maximum length of time the policy will pay benefits
- What is a waiver of premium rider?
- Provision that waives premium payments while the insured is receiving disability benefits
- What is a pre-existing condition in insurance policies?
- A condition that existed before the policy was issued, sometimes subject to exclusion periods
- What are activities of daily living (ADLs)?
- Essential self-care functions used to determine long-term care eligibility, typically including bathing, dressing, eating, and toileting
- What is cognitive impairment in long-term care policies?
- Significant loss of mental capacity, often due to Alzheimer's or dementia, that qualifies for benefits
- What is a benefit trigger in disability insurance?
- The specific event or condition that must occur for the policy to begin paying benefits
- What does own-occupation definition mean?
- The insured is disabled if unable to perform the duties of their own specific occupation, regardless of whether they can work in other occupations
- What is modification of occupation in disability policies?
- A middle-ground definition where the insured is disabled if they cannot perform their regular occupation and do not engage in any other occupation for income
- What is residual disability?
- Partial disability where the insured can perform some but not all of their regular job duties, sometimes qualifying for partial benefits
- What does COLA mean in insurance?
- Cost of Living Adjustment, a rider that increases benefits annually to offset inflation
- What is a shared care benefit in long-term care insurance?
- An option allowing a couple to share a single pool of lifetime benefits between them
- What is respite care in long-term care policies?
- Short-term care provided to give relief to a primary caregiver, typically covered under long-term care insurance
- What is a non-forfeiture option?
- A policy provision allowing the insured to maintain reduced benefits after discontinuing premium payments, rather than losing all coverage
- What does guaranteed renewability mean?
- The insured has the right to renew the policy up to a certain age without being denied renewal, though premiums may increase