XCEL CHAPTER 6 - DISABILITY
INSURANCE EXAM 2025 QUESTIONS
AND ANSWERS
Jonas has disability insurance through his employer. The employer pays 75% of the premium,
and Jonas pays the other 25%. What is Jonas's tax liability for any benefits paid from the
disability plan? - ANS Taxes must be paid on 75% of the benefits received
Frank is shopping for a disability income policy. Which of the following would have the HIGHEST
premium? - ANS 14 day waiting period / 10 year benefit period
Loss of income insurance provides - ANS an individual the means to replace wages
The waiting period for a disability insurance policy - ANS excludes payments for a short-term
illness or injury
1 @COPYRIGHT THEBRIGHT 2025/2026
, Claims payable to a Disability Income insured, even whterm-4en the insured can continue to
work, are the result of a - ANS Presumptive disability
Chris is an insured bricklayer who severed his left hand in an automobile accident. Although his
primary duty cannot be performed, Chris is also a substitute high school teacher. He collects a
full disability income check every month. How does his policy define total disability? -
ANS Own occupation
what is the elimination period of an individual disability policy? - ANS time period A disabled
person must wait before benefits are paid
A disability income policy can prevent an insured from earning a higher income than if he/she
were working by utilizing - ANS benefit limits
In what form do disability income policies typically pay benefits? - ANS Periodic income
Tom has a rider on his disability income policy that guarantees the right to increase his benefits
without a medical exam. What kind of rider is this? - ANS Guaranteed insurability rider
2 @COPYRIGHT THEBRIGHT 2025/2026
INSURANCE EXAM 2025 QUESTIONS
AND ANSWERS
Jonas has disability insurance through his employer. The employer pays 75% of the premium,
and Jonas pays the other 25%. What is Jonas's tax liability for any benefits paid from the
disability plan? - ANS Taxes must be paid on 75% of the benefits received
Frank is shopping for a disability income policy. Which of the following would have the HIGHEST
premium? - ANS 14 day waiting period / 10 year benefit period
Loss of income insurance provides - ANS an individual the means to replace wages
The waiting period for a disability insurance policy - ANS excludes payments for a short-term
illness or injury
1 @COPYRIGHT THEBRIGHT 2025/2026
, Claims payable to a Disability Income insured, even whterm-4en the insured can continue to
work, are the result of a - ANS Presumptive disability
Chris is an insured bricklayer who severed his left hand in an automobile accident. Although his
primary duty cannot be performed, Chris is also a substitute high school teacher. He collects a
full disability income check every month. How does his policy define total disability? -
ANS Own occupation
what is the elimination period of an individual disability policy? - ANS time period A disabled
person must wait before benefits are paid
A disability income policy can prevent an insured from earning a higher income than if he/she
were working by utilizing - ANS benefit limits
In what form do disability income policies typically pay benefits? - ANS Periodic income
Tom has a rider on his disability income policy that guarantees the right to increase his benefits
without a medical exam. What kind of rider is this? - ANS Guaranteed insurability rider
2 @COPYRIGHT THEBRIGHT 2025/2026
