1. Which of the following statements concerning group long-term disability income insurance is correct?
A. Disability is usually defined in terms of the inability to perform each and every duty of one’s own occupation.
B. Long-term plans usually cover only non-occupational disability.
C. A waiting period of 3 to 6 months is typically required before benefits are payable.
D. The maximum monthly benefit is usually equal to 100% of the employee’s normal earnings.
2. In your own words, define and explain residual disability benefits.
3. All of the following statements concerning individual disability income policy premiums is (are) correct, EXCEPT:
A. Premiums are based on the policyowner’s age at the time of policy issue.
B. Most policies contain some type of waiver-of-premium provision.
C. Policies contain a 31-day grace period for late premium payments.
D. Premiums increase each year over the period of coverage.