Disability Income Practice Questions
63 free disability income questions for the California Life & Health insurance license exam. Pick any question — answer it and get the full 3-part explanation, no signup required.
- 1.What is the primary purpose of underwriting in disability income insurance?Difficulty 1/5
- 2.Adverse selection in disability income insurance is best described as:Difficulty 2/5
- 3.The primary purpose of underwriting in disability income insurance is to:Difficulty 1/5
- 4.Under an optionally renewable disability policy, the insurer:Difficulty 1/5
- 5.Which statement correctly describes Social Security disability benefits?Difficulty 2/5
- 6.Which group of factors is most commonly used to rate a disability income application?Difficulty 1/5
- 7.Compared with a stand-alone disability income policy, a disability income rider attached to a life policy g…Difficulty 2/5
- 8.Credit disability insurance is designed to:Difficulty 1/5
- 9.A disability buy-out (business purchase) policy is used to:Difficulty 2/5
- 10.A disability income policy that integrates with Social Security disability benefits is one in which:Difficulty 3/5
- 11.In the Social Security survivors benefit program, the blackout period refers to:Difficulty 2/5
- 12.A residual disability rider provides benefits when the insured:Difficulty 3/5
- 13.A worker who is fully insured under the Social Security program:Difficulty 1/5
- 14.A specified (dread) disease policy pays benefits:Difficulty 2/5
- 15.In a group disability insurance arrangement, the master policy is issued to:Difficulty 2/5
- 16.Under a guaranteed renewable disability policy, the insurer:Difficulty 1/5
- 17.An employer pays the entire premium for a group disability insurance plan covering its employees. Which sta…Difficulty 2/5
- 18.Disability income insurance premiums are based primarily on:Difficulty 1/5
- 19.Occupation is especially important in disability income underwriting because:Difficulty 2/5
- 20.Why does the distinction between accident and sickness matter in disability insurance?Difficulty 1/5
- 21.How does the length of the benefit period affect the premium for a disability income policy?Difficulty 2/5
- 22.Which of the following is NOT an example of a limited-benefit policy?Difficulty 2/5
- 23.A business overhead expense (BOE) disability policy pays:Difficulty 2/5
- 24.A pre-existing condition exclusion in a disability policy is designed to:Difficulty 2/5
- 25.A disability income applicant discloses that they race cars as a hobby. The insurer is most likely to:Difficulty 2/5
- 26.In most individual disability income policies, total disability is defined as:Difficulty 1/5
- 27.After reviewing a disability income application, the insurer may take all of the following actions EXCEPT:Difficulty 1/5
- 28.A disability income rider differs from a waiver-of-premium rider in that the disability income rider:Difficulty 3/5
- 29.A travel accident policy is best classified as:Difficulty 1/5
- 30.A key person disability income policy is designed to:Difficulty 1/5
- 31.An occupational (occupational-only) disability policy pays benefits when the insured:Difficulty 1/5
- 32.A common limitation of limited-benefit disability policies is that they:Difficulty 2/5
- 33.An individual pays the premiums for their own disability income policy with personal, after-tax dollars. Th…Difficulty 2/5
- 34.Under the Social Security disability program, a worker under age 24 must have earned how many credits in th…Difficulty 2/5
- 35.Which statement correctly distinguishes the probationary period from the elimination period in a disability…Difficulty 2/5
- 36.Under a conditionally renewable disability policy, the insurer may decline to renew:Difficulty 2/5
- 37.For Social Security disability purposes, a worker is disabled only if unable to engage in any substantial g…Difficulty 2/5
- 38.Which statement best describes the role of limited-benefit disability and health plans in the insurance mar…Difficulty 3/5
- 39.A disability income insurer that places applicants into preferred, standard, and substandard classes is eng…Difficulty 1/5
- 40.The purpose of a disability income rider attached to a life insurance policy is to:Difficulty 1/5
- 41.An applicant who has just been diagnosed with a degenerative condition rushes to buy a disability income po…Difficulty 2/5
- 42.Why does a disability insurer assign applicants to different risk classes (preferred, standard, substandard…Difficulty 2/5
- 43.Which of the following is NOT a possible result of underwriting an individual disability income application?Difficulty 1/5
- 44.An insurer issues a disability income policy to an applicant who has controlled high blood pressure but cha…Difficulty 2/5
- 45.Which of the following is the most important factor in the pricing of disability income insurance?Difficulty 1/5
- 46.All other factors equal, how does the length of the benefit period affect the premium for a disability inco…Difficulty 2/5
- 47.A disability income policy states that sicknesses beginning in the first 30 days after the issue date are n…Difficulty 3/5
- 48.Under a disability income policy, what is partial disability?Difficulty 1/5
- 49.A disability income policy that pays benefits only when disability results from a sickness or injury arisin…Difficulty 2/5
- 50.Why do disability income insurers deliberately limit the monthly benefit to less than the insured's pre-dis…Difficulty 2/5