Insurance Agent License Test LATEST 2023 / 2024 - 100% Correct
Insurance Agent License Test Which statement about individual disability income (DI) insurance is correct? Answer: Most DI policies cover only non-occupational disabilities. Andrea earned $3,000 each month before she was injured in an accident. Now she works part-time and earns $1,000 a month. Her disability income policy pays a $2,000 monthly benefit for total disability. The policy uses a flat rate to determine benefits for partial disability. How much will Andrea receive? Answer: $1,000 A flat benefit payment for partial disability is a percentage of what would be paid for a total disability. This amount is typically 50 percent. As a result, if Andrea's policy pays $2,000 for total disability, she will receive 50 percent of this amount, or $1,000, as a partial disability payment. Under the ______ occ definition, the policy pays benefits if the insured cannot work in his or her own occupation due to disability. Answer: Own Under the ______ occ definition, the policy pays benefits if the insured cannot work in any occupation for which he or she has the necessary education, training, or experience. Answer: Any An income replacement disability insurance policy pays a monthly benefit that equals: Answer: the actual amount of income lost
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