Question

Question 1

Which of the following is true about disability insurance?

Select one:

a. Because the chance of becoming disabled is small, most people do not purchase disability insurance coverage.

b. The probability of a 35 year becoming disabled for three months or longer before age 65 is 20 percent.

c. Older people are less likely to become disabled than younger people.

d. For people who become disabled longer than three months, the average length of time is 2.9 years.

Question 2

Property damage liability covers damages to your car from accidents that are your fault.

Select one:

True

False

Question 3

The Canada Pension Plan is the easiest disability coverage to qualify for benefits.

Select one:

True

False

Question 4

For auto insurance, which area has the highest level of insurance coverage required by law?

Select one:

a. Third party liability coverage

b. Uninsured motorist coverage

c. Comprehensive coverage

d. Accident benefits coverage

Question 5

Which of the following is true regarding employer sponsored long term disability insurance?

Select one:

a. The most important issue to consider is the definition of disability used.

b. Disability benefits are provided for very long periods, usually to full retirement.

c. All large and medium-sized firms offer an optional disability plan through an insurance company.

d. A typical disability policy covers about 90 percent of the employee's salary.

Answer 1

Question 1

Answer (d) is correct as the statistic shows that people become disabled longer than three months than the average length of time is 2.9 years. so option (d) is true.

Question 2

It is a false statement, as property damage liability insurance does not cover the damages to own property due to own mistakes, it covers damages to others property. So statement is false.

Question 3

Canada Pension Plan CPP is not the easiest plan for disability coverage as it contains some conditions in it to get benefit for disability such as age should be down 65 years, disability should be severe and prolonged and minimum years of contribution so it is not easiest plan and given statement is a false statement.

Question 4

Answer © is correct as for auto insurance, a comprehensive policy includes every type of covers to third party and own damage so answer C is correct.

Question 5

Option (a ) is true as in a employee sponsored disability plan it is a major issue always that what is the definition of disability. So option (a) is true.