Which of the Following Statements Regarding Group Long-Term Disability Income

question 26

Multiple Choice

Which of the following statements regarding group long-term disability income insurance plans is (are) true?
I.These plans are usually limited to occupational disabilities.
II.These plans typically use a more restrictive definition of disability after an initial period of disability,such as two years.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Equity Investment Securities

Financial assets purchased with the expectation of earning a return through dividends, capital appreciation, or both.

Retained Earnings

The portion of a company's profits that is kept or retained for reinvestment in the business or to pay debt, rather than distributed to shareholders.

Payment

The act of giving or transferring money or monetary value in exchange for goods, services, or to fulfill a legal obligation.

Shares

Units of ownership interest in a corporation or financial asset, providing an entitlement to a portion of the profit.