SDLAHP South Dakota Life Accident and Health Producer - Set 4 - Part 3

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

Question 41: A policyowner fails to pay a renewal premium by its due date on an accident and health policy. Which statement correctly describes the effect of the grace period provision on coverage during the days immediately following that missed due date?

coverage lapses immediately at the due date

coverage doubles until the premium is paid

the policy stays in force temporarily

the insurer must refund the prior premium

Question 42: An accident and health policy lets the insurer terminate coverage at any time during the policy term, not just at renewal, so long as required advance notice is given and any unearned premium is refunded. Which renewability classification correctly describes this policy?

noncancelable

guaranteed renewable

conditionally renewable

cancelable

Question 43: A disability income contract specifies the maximum length of time that monthly benefits will continue to be paid for a single covered disability, after which payments stop even if the insured remains disabled. Which policy feature does this maximum duration describe?

the benefit period

the elimination period

the probationary period

the grace period

Question 44: An employer pays the full premium for a group disability income policy covering its employees and deducts that premium as an ordinary business expense on its own tax return. Which tax treatment generally applies to the monthly disability benefits an employee later receives under this employer-paid policy?

the benefits are entirely tax-free

the benefits count as taxable income

only half the benefits are ever taxable

the benefits are taxed to the employer

Question 45: A small manufacturing business purchases a disability income policy on its lead engineer, whose specialized knowledge drives most of the company's revenue, so the business itself would receive benefits if that engineer became disabled. Which purpose does this type of business disability coverage primarily serve?

providing the engineer's family income replacement

funding the engineer's eventual retirement plan

helping the business offset lost revenue

paying for the engineer's ongoing medical bills

Question 46: An insured dies from a covered accident during the grace period, after the due date for the renewal premium but before that premium was actually paid. Which statement correctly describes how the claim should be handled under the grace period provision?

the claim is denied for nonpayment

the beneficiary must pay premium first

the policy is treated as never renewed

the claim pays, minus premium owed

Question 47: A sole proprietor buys a policy designed to reimburse the fixed operating costs of her practice, such as rent, utilities, and employee salaries, if she becomes totally disabled and cannot generate revenue for the business. Which type of business disability coverage is described here?

business overhead expense insurance

key person disability insurance

disability buy-sell insurance

a social insurance supplement rider

Question 48: An insured survives a covered accident but loses one hand as a direct result, and the attached accidental death and dismemberment rider pays a benefit set by a predetermined schedule for that type of loss. Which term describes this scheduled, lesser payment for a covered dismemberment?

a principal sum benefit

a capital sum benefit

a waiver of premium benefit

a cost of living benefit

Question 49: An applicant for Social Security disability benefits must show an inability to engage in any substantial gainful activity from a medically determinable impairment expected to last a lengthy duration or cause death, and must satisfy a waiting span before payments begin. Which statement correctly describes this federal standard?

an own-occupation test with no waiting span

a residual test with no duration limit

a strict any-occupation test with waiting

a presumptive test covering any minor impairment

Question 50: An insured wants to complete the claims process for a covered disability under an accident and health policy. Which statement correctly identifies the general deadline the proof of loss provision sets for furnishing written proof of the loss to the insurer?

within the same day the loss occurs

anytime before the policy's next anniversary

only after the insurer requests it twice

within ninety days after the loss occurs

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