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Colorado Health Insurance Practice Exam | Questions
and Verified Answers | 100% Correct (Latest Update
)
Indemnity
Monthly amount paid to individual to make up for lost earnings due to insured's
inability to work
Elimination (Waiting) Period
Time period insured must be disabled before benefits begin, not paid
retroactively
- 30, 60, 90, 180 days
Benefit Period
Benefits paid during disability period or until end of specified period of time
-Typically 1 year, 2 years, 5 years, and to age 65
Waiver of Premium
Waives premium payments during disability after initial waiting period,
retroactively effective to beginning of waiting period and premiums paid during
that time will be refunded once benefits begin
Additional Monthly Benefit (AMB) Rider
, 2
Pays an additional benefit amount with regular monthly benefit for limited period
of time (usually 6 or 12 months), paid even if insured receives government
benefits
-Work comp, other government programs
Social Insurance Supplement (SIS) Rider
Pays in addition to regular disability policies until Workers' Compensation or
Social Security payments begin, pays only during policy period, makes up for gaps
left by government programs
Non-Occupational Coverage
Covers disabilities that result from non-job-related illnesses or injuries
Occupational Coverage
Covers both job-related and non-job related disabilities
Partial Disability
Pays 50% of total benefit, person returns to work in a reduced capacity, usually no
longer that 3-6 months
Residual Disability Benefits
Based on amount of income lost due to disability, if less than stated income
reduction then no benefits will be paid
Recurrent Disability
Protects employee who returns to work but becomes disabled again due to same
related cause, must occur within certain time frame after returning to work, no
waiting to receive benefits again
Cost-Of-Living-Adjustment (COLA) Rider
Benefit amount can increase while receiving disability based on Consumer Price
Index, adjusted usually every 12 months
Future Increase Option (FIO) Rider
Allows insured to increase policy benefits without having to provide evidence of
insurability, income must have increased
Colorado Health Insurance Practice Exam | Questions
and Verified Answers | 100% Correct (Latest Update
)
Indemnity
Monthly amount paid to individual to make up for lost earnings due to insured's
inability to work
Elimination (Waiting) Period
Time period insured must be disabled before benefits begin, not paid
retroactively
- 30, 60, 90, 180 days
Benefit Period
Benefits paid during disability period or until end of specified period of time
-Typically 1 year, 2 years, 5 years, and to age 65
Waiver of Premium
Waives premium payments during disability after initial waiting period,
retroactively effective to beginning of waiting period and premiums paid during
that time will be refunded once benefits begin
Additional Monthly Benefit (AMB) Rider
, 2
Pays an additional benefit amount with regular monthly benefit for limited period
of time (usually 6 or 12 months), paid even if insured receives government
benefits
-Work comp, other government programs
Social Insurance Supplement (SIS) Rider
Pays in addition to regular disability policies until Workers' Compensation or
Social Security payments begin, pays only during policy period, makes up for gaps
left by government programs
Non-Occupational Coverage
Covers disabilities that result from non-job-related illnesses or injuries
Occupational Coverage
Covers both job-related and non-job related disabilities
Partial Disability
Pays 50% of total benefit, person returns to work in a reduced capacity, usually no
longer that 3-6 months
Residual Disability Benefits
Based on amount of income lost due to disability, if less than stated income
reduction then no benefits will be paid
Recurrent Disability
Protects employee who returns to work but becomes disabled again due to same
related cause, must occur within certain time frame after returning to work, no
waiting to receive benefits again
Cost-Of-Living-Adjustment (COLA) Rider
Benefit amount can increase while receiving disability based on Consumer Price
Index, adjusted usually every 12 months
Future Increase Option (FIO) Rider
Allows insured to increase policy benefits without having to provide evidence of
insurability, income must have increased
