AIIM Certified Disability Insurance Specialist
CDIS Exam
**Question 1.** Which of the following best describes the primary purpose of disability
insurance?
A) To replace lost life insurance death benefits
B) To provide income protection during a period of inability to work
C) To cover medical expenses only
D) To fund retirement savings
Answer: B
Explanation: Disability insurance is designed to replace a portion of earned income when a
insured is unable to work due to illness or injury, distinguishing it from life or health insurance.
**Question 2.** The Human Life Value (HLV) concept is used primarily to:
A) Determine the premium tax credit eligibility
B) Calculate the present value of future earnings lost due to disability
C) Estimate the cost of long‑term care services
D) Set the statutory benefit limits for SSDI
Answer: B
Explanation: HLV quantifies the economic contribution an individual would have made if not
disabled, helping agents size disability coverage appropriately.
**Question 3.** Under an “Own Occupation” definition, a claim is payable when the insured:
A) Cannot perform any job in the national economy
B) Is unable to perform the duties of the occupation in which they are regularly employed
C) Is unable to perform any job that requires a college degree
D) Is temporarily unable to work for less than 30 days
Answer: B
, AIIM Certified Disability Insurance Specialist
CDIS Exam
Explanation: “Own Occupation” benefits trigger when the insured cannot work in their specific
occupation, even if they could work in another field.
**Question 4.** The “Any Occupation” definition differs from “Own Occupation” in that
benefits are payable only when the insured:
A) Cannot perform any work for which they are reasonably qualified by education, training, or
experience
B) Is unable to perform the duties of their current employer’s job title
C) Requires a waiting period of 180 days before benefits begin
D) Has a pre‑existing condition that worsens
Answer: A
Explanation: “Any Occupation” is stricter; benefits are paid only if the insured cannot work in
any occupation they are reasonably qualified for.
**Question 5.** “Modified Own Occupation” disability benefits are typically triggered when the
insured:
A) Is unable to perform the essential duties of their own occupation for a specified number of
days per year
B) Can work part‑time in a different field without restrictions
C) Has a temporary disability lasting less than 90 days
D) Is receiving workers’ compensation benefits
Answer: A
Explanation: Modified Own Occupation usually allows a limited number of days per year (e.g.,
30 or 60) where the insured can still work in a reduced capacity before benefits cease.
**Question 6.** Which of the following is a source of disability income that is **not** a private
insurance product?
A) Employer‑sponsored group disability plan
, AIIM Certified Disability Insurance Specialist
CDIS Exam
B) Individual long‑term disability (LTD) policy
C) Social Security Disability Insurance (SSDI)
D) Catastrophic disability rider
Answer: C
Explanation: SSDI is a federal program funded through payroll taxes; it is a public source of
disability income, unlike private policies.
**Question 7.** Workers’ compensation benefits differ from private disability insurance
primarily because they:
A) Are based on the insured’s pre‑injury earnings
B) Are payable only for occupational injuries or diseases covered by state law
C) Provide benefits for any disability, regardless of cause
D) Have no elimination period
Answer: B
Explanation: Workers’ comp is a state‑mandated program that pays benefits only for
work‑related injuries or illnesses, and the benefit amount is often a statutory percentage of
wages.
**Question 8.** Which statement most accurately reflects the morbidity factor in disability
insurance pricing?
A) Morbidity risk is lower than mortality risk, resulting in cheaper premiums than life insurance.
B) Morbidity risk refers to the probability of death within the policy term.
C) Morbidity risk is the likelihood of illness or injury that leads to a claim, and it generally results
in higher premiums than pure life insurance.
D) Morbidity risk is ignored when pricing disability policies.
Answer: C
, AIIM Certified Disability Insurance Specialist
CDIS Exam
Explanation: Morbidity (risk of disability) is typically higher than mortality, so disability
premiums are higher than comparable life insurance premiums.
**Question 9.** Short‑Term Disability (STD) policies most commonly provide benefits for a
maximum duration of:
A) 5 years
B) 2 years
C) 6 months to 1 year
D) Lifetime
Answer: C
Explanation: STD plans are designed to replace income for a brief period, usually ranging from 3
to 12 months, after an elimination period.
**Question 10.** Long‑Term Disability (LTD) policies differ from STD policies primarily in:
A) The type of medical underwriting required
B) The inclusion of a Cost‑of‑Living Adjustment rider
C) The length of the benefit period, often extending to age 65 or longer
D) The requirement that the insured be self‑employed
Answer: C
Explanation: LTD policies provide benefits for extended periods, often until retirement age,
whereas STD benefits are short‑term.
**Question 11.** An elimination period of 30 days in a disability policy means:
A) Benefits begin 30 days after the claim is filed.
B) The insured must be disabled for 30 consecutive days before benefits become payable.
C) The policy will terminate after 30 days of non‑payment.
CDIS Exam
**Question 1.** Which of the following best describes the primary purpose of disability
insurance?
A) To replace lost life insurance death benefits
B) To provide income protection during a period of inability to work
C) To cover medical expenses only
D) To fund retirement savings
Answer: B
Explanation: Disability insurance is designed to replace a portion of earned income when a
insured is unable to work due to illness or injury, distinguishing it from life or health insurance.
**Question 2.** The Human Life Value (HLV) concept is used primarily to:
A) Determine the premium tax credit eligibility
B) Calculate the present value of future earnings lost due to disability
C) Estimate the cost of long‑term care services
D) Set the statutory benefit limits for SSDI
Answer: B
Explanation: HLV quantifies the economic contribution an individual would have made if not
disabled, helping agents size disability coverage appropriately.
**Question 3.** Under an “Own Occupation” definition, a claim is payable when the insured:
A) Cannot perform any job in the national economy
B) Is unable to perform the duties of the occupation in which they are regularly employed
C) Is unable to perform any job that requires a college degree
D) Is temporarily unable to work for less than 30 days
Answer: B
, AIIM Certified Disability Insurance Specialist
CDIS Exam
Explanation: “Own Occupation” benefits trigger when the insured cannot work in their specific
occupation, even if they could work in another field.
**Question 4.** The “Any Occupation” definition differs from “Own Occupation” in that
benefits are payable only when the insured:
A) Cannot perform any work for which they are reasonably qualified by education, training, or
experience
B) Is unable to perform the duties of their current employer’s job title
C) Requires a waiting period of 180 days before benefits begin
D) Has a pre‑existing condition that worsens
Answer: A
Explanation: “Any Occupation” is stricter; benefits are paid only if the insured cannot work in
any occupation they are reasonably qualified for.
**Question 5.** “Modified Own Occupation” disability benefits are typically triggered when the
insured:
A) Is unable to perform the essential duties of their own occupation for a specified number of
days per year
B) Can work part‑time in a different field without restrictions
C) Has a temporary disability lasting less than 90 days
D) Is receiving workers’ compensation benefits
Answer: A
Explanation: Modified Own Occupation usually allows a limited number of days per year (e.g.,
30 or 60) where the insured can still work in a reduced capacity before benefits cease.
**Question 6.** Which of the following is a source of disability income that is **not** a private
insurance product?
A) Employer‑sponsored group disability plan
, AIIM Certified Disability Insurance Specialist
CDIS Exam
B) Individual long‑term disability (LTD) policy
C) Social Security Disability Insurance (SSDI)
D) Catastrophic disability rider
Answer: C
Explanation: SSDI is a federal program funded through payroll taxes; it is a public source of
disability income, unlike private policies.
**Question 7.** Workers’ compensation benefits differ from private disability insurance
primarily because they:
A) Are based on the insured’s pre‑injury earnings
B) Are payable only for occupational injuries or diseases covered by state law
C) Provide benefits for any disability, regardless of cause
D) Have no elimination period
Answer: B
Explanation: Workers’ comp is a state‑mandated program that pays benefits only for
work‑related injuries or illnesses, and the benefit amount is often a statutory percentage of
wages.
**Question 8.** Which statement most accurately reflects the morbidity factor in disability
insurance pricing?
A) Morbidity risk is lower than mortality risk, resulting in cheaper premiums than life insurance.
B) Morbidity risk refers to the probability of death within the policy term.
C) Morbidity risk is the likelihood of illness or injury that leads to a claim, and it generally results
in higher premiums than pure life insurance.
D) Morbidity risk is ignored when pricing disability policies.
Answer: C
, AIIM Certified Disability Insurance Specialist
CDIS Exam
Explanation: Morbidity (risk of disability) is typically higher than mortality, so disability
premiums are higher than comparable life insurance premiums.
**Question 9.** Short‑Term Disability (STD) policies most commonly provide benefits for a
maximum duration of:
A) 5 years
B) 2 years
C) 6 months to 1 year
D) Lifetime
Answer: C
Explanation: STD plans are designed to replace income for a brief period, usually ranging from 3
to 12 months, after an elimination period.
**Question 10.** Long‑Term Disability (LTD) policies differ from STD policies primarily in:
A) The type of medical underwriting required
B) The inclusion of a Cost‑of‑Living Adjustment rider
C) The length of the benefit period, often extending to age 65 or longer
D) The requirement that the insured be self‑employed
Answer: C
Explanation: LTD policies provide benefits for extended periods, often until retirement age,
whereas STD benefits are short‑term.
**Question 11.** An elimination period of 30 days in a disability policy means:
A) Benefits begin 30 days after the claim is filed.
B) The insured must be disabled for 30 consecutive days before benefits become payable.
C) The policy will terminate after 30 days of non‑payment.
