Disability Income Practice Questions

63 free disability income questions for the California Life & Health insurance license exam. Pick any question — answer it and get the full 3-part explanation, no signup required.

1. 1.What is the primary purpose of underwriting in disability income insurance?
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2. 2.Adverse selection in disability income insurance is best described as:
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3. 3.The primary purpose of underwriting in disability income insurance is to:
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4. 4.Under an optionally renewable disability policy, the insurer:
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5. 5.Which statement correctly describes Social Security disability benefits?
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6. 6.Which group of factors is most commonly used to rate a disability income application?
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7. 7.Compared with a stand-alone disability income policy, a disability income rider attached to a life policy g…
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8. 8.Credit disability insurance is designed to:
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9. 9.A disability buy-out (business purchase) policy is used to:
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10. 10.A disability income policy that integrates with Social Security disability benefits is one in which:
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11. 11.In the Social Security survivors benefit program, the blackout period refers to:
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12. 12.A residual disability rider provides benefits when the insured:
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13. 13.A worker who is fully insured under the Social Security program:
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14. 14.A specified (dread) disease policy pays benefits:
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15. 15.In a group disability insurance arrangement, the master policy is issued to:
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16. 16.Under a guaranteed renewable disability policy, the insurer:
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17. 17.An employer pays the entire premium for a group disability insurance plan covering its employees. Which sta…
    Difficulty 2/5
18. 18.Disability income insurance premiums are based primarily on:
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19. 19.Occupation is especially important in disability income underwriting because:
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20. 20.Why does the distinction between accident and sickness matter in disability insurance?
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21. 21.How does the length of the benefit period affect the premium for a disability income policy?
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22. 22.Which of the following is NOT an example of a limited-benefit policy?
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23. 23.A business overhead expense (BOE) disability policy pays:
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24. 24.A pre-existing condition exclusion in a disability policy is designed to:
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25. 25.A disability income applicant discloses that they race cars as a hobby. The insurer is most likely to:
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26. 26.In most individual disability income policies, total disability is defined as:
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27. 27.After reviewing a disability income application, the insurer may take all of the following actions EXCEPT:
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28. 28.A disability income rider differs from a waiver-of-premium rider in that the disability income rider:
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29. 29.A travel accident policy is best classified as:
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30. 30.A key person disability income policy is designed to:
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31. 31.An occupational (occupational-only) disability policy pays benefits when the insured:
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32. 32.A common limitation of limited-benefit disability policies is that they:
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33. 33.An individual pays the premiums for their own disability income policy with personal, after-tax dollars. Th…
    Difficulty 2/5
34. 34.Under the Social Security disability program, a worker under age 24 must have earned how many credits in th…
    Difficulty 2/5
35. 35.Which statement correctly distinguishes the probationary period from the elimination period in a disability…
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36. 36.Under a conditionally renewable disability policy, the insurer may decline to renew:
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37. 37.For Social Security disability purposes, a worker is disabled only if unable to engage in any substantial g…
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38. 38.Which statement best describes the role of limited-benefit disability and health plans in the insurance mar…
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39. 39.A disability income insurer that places applicants into preferred, standard, and substandard classes is eng…
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40. 40.The purpose of a disability income rider attached to a life insurance policy is to:
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41. 41.An applicant who has just been diagnosed with a degenerative condition rushes to buy a disability income po…
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42. 42.Why does a disability insurer assign applicants to different risk classes (preferred, standard, substandard…
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43. 43.Which of the following is NOT a possible result of underwriting an individual disability income application?
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44. 44.An insurer issues a disability income policy to an applicant who has controlled high blood pressure but cha…
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45. 45.Which of the following is the most important factor in the pricing of disability income insurance?
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46. 46.All other factors equal, how does the length of the benefit period affect the premium for a disability inco…
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47. 47.A disability income policy states that sicknesses beginning in the first 30 days after the issue date are n…
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48. 48.Under a disability income policy, what is partial disability?
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49. 49.A disability income policy that pays benefits only when disability results from a sickness or injury arisin…
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50. 50.Why do disability income insurers deliberately limit the monthly benefit to less than the insured's pre-dis…
    Difficulty 2/5