HEALTH INSURANCE TEST EXAM QUESTIONS WITH
SOLUTIONS 2025 GRADED A+
✔✔In which of the following cases would an "any occupation" disability income policy
pay the benefits? - ✔✔a. the insured is unable to perform the duties of his or her
specific occupation
b. the insured changes jobs and is injured as a result of a more hazardous occupation
c. the insured's family has unexpected expenses due to the insured's disability
d. the insured is unable to perform any jobs in the field related to to the insured's
education and experience
-D
✔✔In disability income insurance, another name for the waiting period is? -
✔✔elimination period
✔✔If a disability income policy covers non-disabling injuries, benefits will probably be
limited to *** of the regular weekly benefit? - ✔✔10%
✔✔Which statement accurately describes group disability income insurance? - ✔✔a.
there are no participation requirements for employees
b. short-term plans provide benefits for up to 1 year
c. the extent of the benefits is determined by the insured's income
d. in long term plans, monthly benefits are limited to 75% of the insured's income
-C
✔✔Regarding the taxation of business overhead policies? - ✔✔premiums are
deductible and benefits are taxed
✔✔A small business owner is the insured under a disability policy that funds a buy-sell
agreement. If the owner dies or becomes disabled, the policy would provide? - ✔✔cash
to the owner's business partner to accomplish a buyout
✔✔A small hardware store owner is involved in a car accident that renders him totally
disabled for half a year. which type of insurance would help him pay for expenses of the
company during the time of his disability? - ✔✔business overhead expense policy
✔✔The primary purpose of disability income insurance is to? - ✔✔replace income lost
due to a disability
✔✔An insured is involved in a car accident. In addition to general, less serious injuries,
he permanently loses the use of his leg and is rendered completely blind. The blindness
, improves a month later. To what extent will he receive presumptive disability benefits? -
✔✔no benefits
✔✔A policy available to business owners that provides payment for normal business
expenses in the event that the owner is disabled is called? - ✔✔business overhead
expense
✔✔A disability income policy is written with a 10 month benefit period, a 30 day
elimination period, and a 30 day probationary period. If the insured becomes disabled
due to illness 9 nine days after the effective date, the policy will pay benefits for a max
of? - ✔✔10 months
✔✔What is the purpose of the rehabilitation benefit of disability insurance? - ✔✔To
cover the expenses of retraining the insured to return to work
✔✔An insured is involved in an accident that renders him permanently deaf, although
he does not sustain any other major injuries. The insured is still able to perform his
current job. To what extent will he receive presumptive disability benefits? - ✔✔full
benefits
✔✔An insured is hospitalized with a back injury. Upon checking his disability income
policy, he learns that he will not be eligible for benefits for at least 30 days. This would
indicate that his policy was probably written with a 30 day? - ✔✔elimination period
✔✔All the following are true regarding key person disability income insurance except? -
✔✔a. the employee is the insured
b. premiums are tax deductible as a business expense
c. the employer receives the benefits if the key person is disabled
d. the employer pays the premiums
-C
✔✔A client has a new individual disability income policy with a 20 day probationary
period and a 30 day elimination period. Ten days later, the client breaks their leg and is
off work for 45 days. How many days of disability benefits will the policy pay? - ✔✔15
✔✔Bob's legs were injured in an accident, and he must use a wheelchair for the rest of
his life. What type of disability does this describe? - ✔✔total, nonconfining
✔✔benefit periods for individual short term disability policies will usually continue from?
- ✔✔6 months - 2 years
SOLUTIONS 2025 GRADED A+
✔✔In which of the following cases would an "any occupation" disability income policy
pay the benefits? - ✔✔a. the insured is unable to perform the duties of his or her
specific occupation
b. the insured changes jobs and is injured as a result of a more hazardous occupation
c. the insured's family has unexpected expenses due to the insured's disability
d. the insured is unable to perform any jobs in the field related to to the insured's
education and experience
-D
✔✔In disability income insurance, another name for the waiting period is? -
✔✔elimination period
✔✔If a disability income policy covers non-disabling injuries, benefits will probably be
limited to *** of the regular weekly benefit? - ✔✔10%
✔✔Which statement accurately describes group disability income insurance? - ✔✔a.
there are no participation requirements for employees
b. short-term plans provide benefits for up to 1 year
c. the extent of the benefits is determined by the insured's income
d. in long term plans, monthly benefits are limited to 75% of the insured's income
-C
✔✔Regarding the taxation of business overhead policies? - ✔✔premiums are
deductible and benefits are taxed
✔✔A small business owner is the insured under a disability policy that funds a buy-sell
agreement. If the owner dies or becomes disabled, the policy would provide? - ✔✔cash
to the owner's business partner to accomplish a buyout
✔✔A small hardware store owner is involved in a car accident that renders him totally
disabled for half a year. which type of insurance would help him pay for expenses of the
company during the time of his disability? - ✔✔business overhead expense policy
✔✔The primary purpose of disability income insurance is to? - ✔✔replace income lost
due to a disability
✔✔An insured is involved in a car accident. In addition to general, less serious injuries,
he permanently loses the use of his leg and is rendered completely blind. The blindness
, improves a month later. To what extent will he receive presumptive disability benefits? -
✔✔no benefits
✔✔A policy available to business owners that provides payment for normal business
expenses in the event that the owner is disabled is called? - ✔✔business overhead
expense
✔✔A disability income policy is written with a 10 month benefit period, a 30 day
elimination period, and a 30 day probationary period. If the insured becomes disabled
due to illness 9 nine days after the effective date, the policy will pay benefits for a max
of? - ✔✔10 months
✔✔What is the purpose of the rehabilitation benefit of disability insurance? - ✔✔To
cover the expenses of retraining the insured to return to work
✔✔An insured is involved in an accident that renders him permanently deaf, although
he does not sustain any other major injuries. The insured is still able to perform his
current job. To what extent will he receive presumptive disability benefits? - ✔✔full
benefits
✔✔An insured is hospitalized with a back injury. Upon checking his disability income
policy, he learns that he will not be eligible for benefits for at least 30 days. This would
indicate that his policy was probably written with a 30 day? - ✔✔elimination period
✔✔All the following are true regarding key person disability income insurance except? -
✔✔a. the employee is the insured
b. premiums are tax deductible as a business expense
c. the employer receives the benefits if the key person is disabled
d. the employer pays the premiums
-C
✔✔A client has a new individual disability income policy with a 20 day probationary
period and a 30 day elimination period. Ten days later, the client breaks their leg and is
off work for 45 days. How many days of disability benefits will the policy pay? - ✔✔15
✔✔Bob's legs were injured in an accident, and he must use a wheelchair for the rest of
his life. What type of disability does this describe? - ✔✔total, nonconfining
✔✔benefit periods for individual short term disability policies will usually continue from?
- ✔✔6 months - 2 years
