Which of the Following Changes Would Tend to Increase the Premium

question 49

Multiple Choice

Which of the following changes would tend to increase the premium on a disability policy?

• A)A shorter elimination period
• B)Use of "any occupation" definition of disability instead of "own occupation to which one is reasonably suited"
• C)Decreasing the benefit level to 50% from 66% of prior earnings
• D)Decreasing the payment period until age 65 to a maximum of 2 years
• E)Mandatory disability insurance in which the employer pays the entire premium

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Definitions:

Echoic Memory

A subsystem of sensory memory that retains auditory information for a short period after the original sound has ceased.

Selectively Noticing

The cognitive process of focusing attention on certain stimuli or information while ignoring others, often based on personal relevance or importance.

Attention

The process of selectively concentrating on one aspect of the environment while ignoring other things.

Short-term Memory

The capacity for holding, but not manipulating, a small amount of information in mind in an active, readily available state for a short period of time.