CLAHS California Life, Accident and Health or Sickness Examination - Set 5 - Part 1

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 1: Disability income insurance is designed primarily to do which of the following when a covered sickness or injury prevents a person from working?

Pay the insured's medical bills

Pay a death benefit

Replace a portion of lost income

Cover property damage

Question 2: A total disability definition that considers an insured disabled when unable to perform the duties of their own occupation is described as which of the following?

More favorable to the insured

Stricter than any-occupation

Favorable to the insurer

Identical to the Social Security standard

Question 3: Under an any-occupation definition of total disability, an insured is considered disabled only when unable to perform which of the following?

The duties of their own former job

Any single task at home

Their favorite recreational activity

Any job they are reasonably suited for

Question 4: Which of the following losses is typically treated as presumptive total disability, paid automatically whether or not the insured can work?

Loss of one finger

Loss of sight in both eyes

A short hospital stay

A temporary back strain

Question 5: The Social Security definition of disability is considered one of the strictest because it requires that the person be unable to do which of the following?

Their own former occupation only

Heavy physical labor only

Any substantial gainful activity

Work without any accommodation

Question 6: Occupational disability coverage, common in individual policies, pays for disabilities arising from which of the following?

Both on-the-job and off-the-job causes

Off-the-job causes only

Job-related causes only

Only injuries during travel

Question 7: Non-occupational disability coverage, common in group plans, excludes on-the-job injuries because those are presumed to be covered by which of the following?

Medicare

A health savings account

Life insurance

Workers compensation

Question 8: Insurers limit a disability income benefit to a percentage of the applicant's income primarily for which reason?

To maximize the insurer's profit

To comply with Medicare rules

To keep an incentive to work

To avoid paying any claims

Question 9: A short-term disability policy is characterized by which of the following?

Benefits payable to age sixty-five

Short benefit and elimination periods

A long elimination period

Coverage only for death

Question 10: A long-term disability policy commonly sets its elimination period to equal which of the following?

The policy's free-look period

The Medicare waiting period

The insured's age at issue

The benefit period of a short-term plan

Question 11: In a disability income policy, the elimination period functions as which of the following?

A time deductible before benefits begin

A cash deductible per claim

The maximum benefit period

A refund of premiums

Question 12: The probationary period in a disability income policy is best described as which of the following?

A waiting period after every claim

The period benefits are paid

A one-time initial period excluding certain sickness

A grace period for premiums

Question 13: In disability income rate-making, the factor reflecting the expected incidence and duration of disability within a group is known as which of the following?

Mortality

Morbidity

Persistency

Liquidity

Question 14: Which rate-making component tends to lower the premium a disability income policyholder must pay?

Higher expected morbidity

Higher insurer expenses

Higher agent commissions

Expected investment earnings

Question 15: Which factor is the single most important in underwriting individual disability income insurance?

The applicant's occupation

The applicant's marital status

The applicant's home value

The applicant's hobbies alone

Question 16: A recurrent disability provision provides that if an insured returns to work and then becomes disabled again from the same cause within a stated time, what happens?

A new elimination period applies

The policy terminates

It continues, with no new elimination period

Benefits are permanently reduced

Question 17: While an insured remains disabled, the provision that keeps a disability income policy in force without further premium payments is known as which of the following?

Cost of living adjustment

Guaranteed insurability

Recurrent disability

Waiver of premium

Question 18: Which disability income rider increases a benefit that is already being paid, to keep pace with inflation?

The future increase option

The cost of living adjustment rider

The waiver of premium

The presumptive disability provision

Question 19: When a person buys an individual disability income policy and pays the premiums with their own after-tax dollars, how are the benefits treated for income tax?

The benefits are received income-tax-free

The benefits are fully taxable

Half the benefits are taxable

The benefits are taxed as capital gains

Question 20: When an employer pays the entire premium for a group disability income plan and deducts it, how are the employee's benefits treated for income tax?

The benefits are tax-free

Only the premiums are taxed

Neither premiums nor benefits are taxed

The benefits are taxable income

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