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LOMA 281 MODULE 3 QUESTIONS AND ANSWERS
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LOMA 281 MODULE 3 QUESTIONS AND ANSWERS
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LOMA 281 MODULE 3 QUESTIONS AND ANSWERSWaiver of premium for disability (WP) Benefit - Answers- 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
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 - Answers- C.
Wavior of premium for disability benefits compared - Answers- 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.
Wavior of premium for payor benefit compared - Answers- 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 - Answers- 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 - Answers- A.
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 - Answers- C.
Waiver of premium for payor benefit - Answers- 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.
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
b. Waiver of premium for payor rider
c. Waiver of premium for disability rider - Answers- C.
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 - Answers- B.
accidental death benefit - Answers- 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 - Answers- 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 - Answers- 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 - Answers- B.
Accidental death and dismemberment (AD&D) benefit - Answers- 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 - Answers- C.
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.
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