Table of Contents

Welcome 3

Chapter One

Intro to Disability Insurance 4

Who needs Disability Coverage? 4

How much coverage is needed? 6

Degrees of disabilities 7

Monthly Expenses Worksheet 9

Income for Expenses Worksheet 10

How soon should benefits begin? 11

How long should benefits last? 11

Managing the DI Benefits 12

Review Questions 13

Chapter Two

Types of Coverage 14

Where is DI coverage available? 14

Employer-Provided Disability Coverage 15

Group Disability Insurance 17

METS 17

Individual Coverage 19

ARDI 19

Review Questions 20

Chapter Three

Provisions & Riders 21

Mandatory Provisions 21

Description of the 12 22

Optional Provisions 24

Waiver-of-Premium 27

Nonoccupational 28

Transplant 28

Rehabilitation 28

Nondisabling Injury 28

Preexisting Conditions 28

Free Look 29

Common Riders 29

Return of Premium 29

COLA 29

Social Security 30

Purchase Option 30

Family Income 31

Accidental Death & Dismemberment 31

Review Questions 33

Chapter Four

Occupational Classifications & Underwriting 34

Classifications 35

Special Circumstances 35

Underwriting 37

Why the necessity? 37

The agent's role in Underwriting 38

The Underwriting Process 39

Moral & Morale Hazards 41

The Decision 42

Reinsurance 44

Why the Need? 44

Review Questions 47

Chapter Five

Social Security Disability Benefits 48

Social Insurance 48

SSDI & SSI 49

Qualifying for SSDI 49

Qualifying for SSI 49

After Application of SS Benefits 51

The definition of SGA 53

Residual Functional Capacity 55

Alive to file an application? 55

Listings of Impairments, Part A 56

Listings of Impairments, Part B 61

Supplement Security Income (SSI) 64

Who is eligible for SSI? 64

How does SS benefits affect DI? 65

Joke 67

Review Questions 68

Chapter Six

Rating Systems 69

A.M. Best 69

A.M. Best's Rating Modifiers 72

Ratings "NA" Classification 73

Standard & Poor's 75

Moody's 76

Duff & Phelps 78

Weiss Research, Inc. 80

Additional Notations 81

State Ratings 82

Standard Analytical Services 83

Review Questions 84

Chapter Seven

Agent Ethics 85

Definition 85

Due Diligence 86

Simultaneous Representation 87

Minimize Misunderstandings 89

Admitted Assets 91

Consolidated Assets 92

Investment Grade Assets 92

Mandatory Securities Valuation Reserve 93

Capital Ratio 93

Net Premium Income 94

Surplus Reinsurance 94

Last Page 98

Review Questions 98

Glossary 99

 

 

 

United Insurance Educators,

Inc.

P.O. Box 327

Graham, WA 98338

(253) 846-1155