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LOMA 281 Module 3

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Waiver of premium for disability (WP) Benefit - ANSWER A supplemental life insurance policy benefit under which the insurer promises to give up—to waive—its right to collect premiums that become due while the insured is totally disabled. - satisfies a 3-6 month waiting period: meaning for the ...

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  • August 10, 2024
  • 35
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • loma 281 module 3
  • loma 281
  • loma 281 module 3 latest update 2024
  • waiver of premium for disability wp benefit an
  • the wp benefit typically defines total disability

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LOMA 281 Module 3
LATEST UPDATE 2024
Waiver of premium for disability (WP) Benefit - ANSWER A supplemental life insurance policy benefit
under which the insurer promises to give up—to waive—its right to collect premiums that become due
while the insured is totally disabled.

- satisfies a 3-6 month waiting period: meaning for the first 3-6 months the person must cover it



The WP benefit typically defines total disability for the insured as being unable to perform the duties of?



a. Any occupation

b. The insured's own previous occupation

c. Any occupation for which the insured is reasonably suited by education, training, or experience -
ANSWER C.



Waiver of premium for payor benefit - ANSWER A supplemental life insurance policy benefit which
provides that the insurance company will waive the right to collect a policy's renewal premiums if the
policyowner dies or becomes totally disabled.



To add a waiver of premium for payor benefit to a life insurance policy, who do you think must be
insurable?

a. The insured

b. The policyowner

c .Both the insured and the policyowner

d. Neither the insured or the policyowner - ANSWER C.

, Wavior of premium for disability benefits compared - ANSWER Insurer waives policy premiums if the
insured becomes totally disabled.



Designed for policies in which the policyowner is also the policy's insured



Total disability defined as



• The insured's inability to perform the essential duties of her own occupation OR any other occupation
for which she is reasonably suited by education, training, or experience.



A rider on Benjamin Mumford's policy covering the life of his daughter provides that the insurer will
waive the policy's renewal premiums if Mr. Mumford dies or becomes totally disabled.



a. Disability income benefit rider

b. Waiver of premium for payor rider

c. Waiver of premium for disability rider - ANSWER B.



accidental death benefit - ANSWER A supplemental life insurance policy benefit that provides a death
benefit in addition to the policy's basic death benefit if the insured dies as a result of an accident.

- double indemnnity: doubles the face amount payable when the insured dies in an accident

-



Why is an accidental death benefit sometimes called a double indemnity benefit?



a. It frequently doubles the policy's face amount

b. It requires two forms of proof that the death was accidental

c. It doubles the premium for the coverage - ANSWER A.



Accidental death benefit riders typically include certain exclusions. In other words, the insurer will not
pay accidental death benefits if the insured's death results from certain stated causes. Which of the
following causes of death do you think are typically excluded? (Choose all that apply.)

, a. Death resulting from suicide

b. Death as a result of war-related accidents

c. Aviation-related accidents other than as a passenger on an airplane

d. Death occurring during the commission of a crime - ANSWER A, B, C & D



Some life insurance policies include an accidental death and dismemberment benefit. Do you think that
such policies pay two benefits: one for death caused by an accident and an additional benefit if the
deceased is dismembered in the accident?



a. Yes

b. No

c. Sometimes - ANSWER B.



Accidental death and dismemberment (AD&D) benefit - ANSWER A supplemental life insurance policy
benefit that provides an accidental death benefit and provides a dismemberment benefit payable to the
insured if an accident causes the insured to lose any two limbs or the sight in both eyes.

- the dismemeberment benefit amount is same as accidental death benefit

- a smaller benefit may be payable for loss of one limb or one eye



Kevin Walter was the policyowner-insured of a $75,000 life insurance policy that included a typical
$75,000 accidental death and dismemberment (AD&D) benefit rider. While his policy was in force, Mr.
Walter, who had been diagnosed with terminal stomach cancer, died in a traffic accident.



If Mr. Walter's insurance company determines that the accident was the cause of his death, the total
death benefit payable to the policy's beneficiary would be



a. 0

b. $75,000

c. $150,000 - ANSWER C.

Wavior of premium for payor benefit compared - ANSWER Insurer waives policy premiums if the
policyowner dies or becomes totally disabled.

, Designed for third-party policies in which the policyowner is not the policy's insured



Total disability defined as



• The policyowner's inability to perform the essential duties of her own occupation during the first two
years of disability



• The policyowner's inability to perform the essential duties of any occupation for which she is
reasonably entitled by education, training, or experience after the first two years of disability



Disability Income Benefit - ANSWER A supplemental life insurance policy benefit that provides a monthly
income benefit to the policyowner-insured if she becomes totally disabled while the policy is in force.



- 3- 6 month waiting period

- some for riders provide a partially disabled benefit



Identify the supplemental disability benefit rider with its example.



The UL insurance policy Drew Stephens owns on his life includes a rider that will pay him a monthly
benefit if he becomes totally disabled.



a. Disability income benefit rider

b. Waiver of premium for payor rider

c. Waiver of premium for disability rider - ANSWER A.



A rider on Mary Margaret Satterfield's insurance policy specifies that her insurer will pay her renewal
premiums if she becomes disabled.



a. Disability income benefit rider

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