Deck 16: Disability Income Insurance and Disability Benefit Programs

Question 1

Residual benefits pay a

A) partial benefit when the insured is not totally disabled.
B) partial benefit when the insured is totally disabled.
C) total sum based on the type of illness.
D) total payment based on the type of past employment.

Answer 1

partial benefit when the insured is not totally disabled.

Question 2

When an illness or injury prevents an insured person from performing one or more of the functions of his or her regular job, the disability is called

A) partial disability.
B) residual disability.
C) total disability.
D) both a and b

Answer 2

both a and b

Question 3

Coverage that provides a specific monthly or weekly income when a person is unable to work because of an illness or injury is known as

A) guaranteed income insurance.
B) disability income insurance.
C) supplemental insurance.
D) extended income insurance.

Answer 3

disability income insurance.

Question 4

In 1956, the U.S. Congress established a program under Title II of the Social Security Act for long-term disability known as

A) Civil Service Retirement System.
B) Federal Employees Retirement System.
C) Social Security Disability Insurance.
D) Supplemental Security Income.

Question 5

A policy that offers an insured person protection when loss of sight or loss of limb(s) occurs is called

A) double indemnity.
B) residual benefits.
C) dismemberment benefit.
D) amputee protection.

Question 6

The maximum amount of time for which benefits will be paid to the injured or ill person for a disability is called the

A) waiting period.
B) elimination period.
C) benefit period.
D) payment period.

Question 7

What is the time limit for a veteran to file a claim to receive outpatient treatment at VA expense for a service-connected disability?

A) Within 6 months of sustaining the injury
B) Within 1 year of sustaining the injury
C) Within 3 years of sustaining the injury
D) Within 18 months of receiving an honorable discharge

Question 8

Disability income insurance is available from

A) private insurance companies.
B) employer-sponsored plans.
C) government-funded programs.
D) all of the above.

Question 9

State Disability Insurance (SDI) is also known as

A) Unemployment Compensation Disability (UCD).
B) temporary disability insurance (TDI).
C) Social Security Disability Insurance (SSDI).
D) both a and b

Question 10

For a disability income insurance case, the time period from the beginning of disability to receiving the first payment of benefits is called a/an ____________________ period.

Question 11

State Disability Insurance benefits begin after the

A) third consecutive day of disability.
B) fifth consecutive day of disability.
C) seventh consecutive day of disability.
D) tenth consecutive day of disability.

Question 12

Which two programs managed by the Social Security Administration pay monthly disability benefits to people younger than age 65 who cannot work for at least a year because of a severe disability?

A) CCRS and FERS
B) Armed Services Disability and Veterans Affairs (VA) disability program
C) SSDI and SSI
D) SSI and FERS

Question 13

The Armed Services Disability benefits program is available to

A) anyone who has served in the armed services.
B) anyone who has served during a time of war.
C) all civilian and military personnel.
D) members of the armed services on active duty.

Question 14

The Supplemental Security Income (SSI) program under Title XVI of the Social Security Act provides

A) monthly income benefits to workers and those self-employed who meet certain conditions.
B) disability payments to needy people with limited income and few resources.
C) for those who have worked for Civil Service and who become totally disabled.
D) income for those injured on the job.

Question 15

Provisions written into the insurance contract denying coverage or limiting the scope of coverage are called

A) exceptions.
B) exclusions.
C) preexisting conditions.
D) denied benefits.

Question 16

The first state to provide a successful State Disability Insurance program was

A) Alabama.
B) California.
C) Iowa.
D) Rhode Island.

Question 17

In regard to disability income insurance, the _____________________ period is the maximum amount of time for which benefits will be paid to the injured or ill person for a disability.

Question 18

The term guaranteed renewable means that the insurer is

A) required to renew the policy as long as premium payments are made, and the premium may be increased.
B) required to renew the policy as long as premium payments are made, and the premium may not be increased.
C) not required to renew the policy if the premium is increased.
D) not required to renew the policy.

Question 19

What is the correct order in the appeals process?

A) Reconsideration, hearing, review by the Appeals Council, review by the federal court
B) Hearing, reconsideration, review by the Appeals Council, review by the federal court
C) Review by the Appeals Council, reconsideration, hearing, review by the federal court
D) Review by the Appeals Council, review by the federal court, hearing, reconsideration

Question 20

Funding for State Disability Insurance is usually a small percentage of the employee's wage that

A) is deducted from employees' paychecks each month.
B) the employer may elect to pay a portion of.
C) the employer may elect to pay as a fringe benefit.
D) all of the above.

Question 21

Benefits for medical expenses are provided through disability income insurance.

Question 22

Temporary disability exists when an illness or injury prevents a person from performing one or more of the functions of his or her regular job.

Question 23

A ______________________________ (DDS) team composed of a physician/psychologist and disability examiner makes the determination regarding disability for the SSDI and SSI programs.

Question 24

People residing in states that do not provide State Disability Insurance may elect to contact a local private insurance carrier to arrange for coverage under a/an ____________________ disability insurance plan.

Question 25

Disability income insurance provides benefits for work-related disability.

Question 26

If a claimant does not agree with the determination of disability, a _____________________-level appeal process is available.

Question 27

What are the four levels of the appeal process used if disagreement with determination of disability occurs?

Question 28

In a life insurance policy, a feature that provides for twice the face amount of the policy to be paid if death results from accidental causes is called _____________________.

Question 29

Who are the eight types of workers not covered by state disability?

Question 30

In an insurance contract, a/an ____________________ of premiums means that while disabled the employee does not have to pay any premiums because they are paid by the policy.

Question 31

If the validity of a State Disability Insurance case is in question, a/an _______________________________ may be asked by the insurance company to examine the disabled individual.

Question 32

Disabled workers younger than 65 years of age are eligible for SSDI.

Question 33

The physician must obtain prior authorization from the nearest VA facility in disability cases if the treatment costs more than ____________________ per month.

Question 34

Which two programs managed by the Social Security Administration pay disability benefits to people younger than 65?

Question 35

When an employer provides disability income insurance and the employee leaves the company, the insurance terminates unless the employee is disabled.

Question 36

The number of years of service required before benefits can be paid under CSRS is ____________________.

Question 37

Disability income policies do not provide medical expense benefits.

Question 38

What are six major government disability programs?

Question 39

Medical requirements are the same for both the SSDI and SSI programs.

Question 40

The definition of total disability varies from policy to policy because there is no standard definition.

Question 41

If a state has State Disability Insurance, all types of workers are covered.

Question 42

A reason for denial of disability income benefits is insufficient medical information.

Question 43

For people trying to qualify for SSDI or SSI, determination is made by the physician.

Question 44

After a state disability claim is approved, basic benefits become payable on the eighth day of disability or the third day of hospital confinement, whichever comes first.

Question 45

Nonindustrial disability insurance programs exist in only five states and Puerto Rico.

Question 46

No prior employment is necessary for SSDI eligibility.

Question 47

California allows for state disability benefits in a normal routine pregnancy.

Question 48

For patients receiving VA medical care, travel expenses to and from the facility are a benefit.

Question 49

The Civil Service Retirement System (CSRS) is a program that combines federal disability and Social Security disability.

Question 50

One of the most important items on a state disability claim form is the claimant's Social Security number.