A&H Policy ProvisionsQuestion 42 of 315
Tomas adds a critical illness rider to his policy. Six months later he is diagnosed with a covered heart attack and survives. How is the benefit typically paid?
a.A lump-sum cash benefit on first diagnosis of the covered condition
b.A daily indemnity for each day of hospitalization
c.A monthly disability income for the rest of his life
d.Reimbursement of medical expenses up to the rider limit
Explanation
Critical illness (also called dread disease) riders pay a single lump sum upon first diagnosis of a listed condition such as heart attack, stroke, cancer, kidney failure, or major organ transplant. The insured may use the money for any purpose.
Practice all 315 questions free — no signup required.
Related questions on this topic
- Maria and Carlos are married with two dependent children covered under both spouses' group health plans. Maria's birthday is March 8 and Carlos's is October 21. Under California's birthday rule for coordination of benefits, which plan is primary for the children?
- What is the primary purpose of Coordination of Benefits (COB) provisions?
- A hospital indemnity rider pays benefits in what manner?
- What is the elimination period on a disability income policy?
- Which statement about pre-existing-condition exclusions is correct under current federal and California rules?
- Under the Time of Payment of Claims required provision, periodic disability income benefits that have accrued must be paid at least how often during the period the insurer is liable?
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)