Chapter 5 Review

There are a number of sources of disability income benefits; they include both governmental and non-governmental sources.  The principal governmental source of disability benefits for those unable to engage in any gainful activity is Social Security.  Although providing a safety net for the profoundly disabled, Social Security's stringent definition of disability results in a claims rejection rate of more than 60%. All states offer Workers Compensation programs, and six jurisdictions provide non-occupational disability benefits.

Many disability benefits are employer-related.  They may be provided under true group programs or may be association plans, franchise plans or sick-pay plans.

Chapter 5 Review Questions

1. The Social Security definition of disability can be characterized as:

pure own occupation
modified own occupation
limited own occupation
*any occupation

2. Which of the following are requirements for a worker to be eligible to receive Social Security disability benefits?

*The individual must have worked in a covered occupation
The individual is currently insured
Both a and b
Neither a nor b

3. Which of the following is a state program providing disability income benefits?

Workers Compensation
Non-occupation Disability program
*Both a and b
Neither a nor b

4. Which of the following benefits would NOT normally be provided under Workers Compensation?

Cash payments
Medical services
*Long term care services
Hospital services

5. Benefit periods of 26 weeks and zero-day elimination periods are generally characteristic of:

franchise group disability plans
*short-term group disability coverage
long-term group disability coverage
individual disability income insurance