Fundamentals of Insurance - Chapter 8 Exam Questions and Correct Answers Already Passed
Cognitive impairment - Answers a loss of mental capacity that requires you to have substantial
supervision to maintain your safety and the safety of others
Cost of living adjustment (COLA) - Answers in disability insurance, a rider that prevents your benefits
from losing value due to inflation
Custodial care - Answers assistance with the activities of daily living, such as bathing, eating, and
dressing
Daily maximums - Answers in long-term care insurance, daily fixed amounts of coverage for various
kinds of care
Disability insurance - Answers designed to replace all or part of your income if you cannot work or,
because of disability, can earn only a reduced income
Elimination period - Answers a clause in a disability insurance policy that specifies how soon after the
disability the policy will begin to pay benefits
Home health aide - Answers in long-term care, the person who helps the recipient bathe and dress,
changes the bed, and performs other housekeeping tasks, as well as socializes and supports the
individual
Indemnity policies - Answers long-term care policies that specify daily coverage amounts for various
kinds of care
Integrated policy - Answers in long-term care, a policy that specifies a total dollar amount that may be
spent on specified types of care, subdivided into a daily, weekly, or monthly dollar limit
Long-term care (LTC) insurance - Answers designed to cover substantial expenses involved in the
extended care of individuals who have difficulty with basic functions such as eating, bathing, or dressing
Own-occupation protection - Answers extra coverage in a disability policy for those who have a highly
specialized and highly paid job, such as a brain surgeon
Physical impairment - Answers not being able to perform without assistance two, or sometimes three, of
the six basic activities of daily living
Primary caregiver - Answers in long-term care, the person who attends to all of the recipient's medical
needs
Residual benefits - Answers disability insurance that protects you when you are able to work part time
but not full time
Reverse mortgage - Answers an option for paying for long-term care in which a homeowner sells the
equity in the home back to the bank, and the bank makes a monthly payment to the homeowner
Cognitive impairment - Answers a loss of mental capacity that requires you to have substantial
supervision to maintain your safety and the safety of others
Cost of living adjustment (COLA) - Answers in disability insurance, a rider that prevents your benefits
from losing value due to inflation
Custodial care - Answers assistance with the activities of daily living, such as bathing, eating, and
dressing
Daily maximums - Answers in long-term care insurance, daily fixed amounts of coverage for various
kinds of care
Disability insurance - Answers designed to replace all or part of your income if you cannot work or,
because of disability, can earn only a reduced income
Elimination period - Answers a clause in a disability insurance policy that specifies how soon after the
disability the policy will begin to pay benefits
Home health aide - Answers in long-term care, the person who helps the recipient bathe and dress,
changes the bed, and performs other housekeeping tasks, as well as socializes and supports the
individual
Indemnity policies - Answers long-term care policies that specify daily coverage amounts for various
kinds of care
Integrated policy - Answers in long-term care, a policy that specifies a total dollar amount that may be
spent on specified types of care, subdivided into a daily, weekly, or monthly dollar limit
Long-term care (LTC) insurance - Answers designed to cover substantial expenses involved in the
extended care of individuals who have difficulty with basic functions such as eating, bathing, or dressing
Own-occupation protection - Answers extra coverage in a disability policy for those who have a highly
specialized and highly paid job, such as a brain surgeon
Physical impairment - Answers not being able to perform without assistance two, or sometimes three, of
the six basic activities of daily living
Primary caregiver - Answers in long-term care, the person who attends to all of the recipient's medical
needs
Residual benefits - Answers disability insurance that protects you when you are able to work part time
but not full time
Reverse mortgage - Answers an option for paying for long-term care in which a homeowner sells the
equity in the home back to the bank, and the bank makes a monthly payment to the homeowner
