Which of the Following Statements About Disability Income Insurance Is

question 42

Multiple Choice

Which of the following statements about disability income insurance is true?

• A) Most individual disability income policies pay a fixed percentage of gross income.
• B) Any disability stemming from an illness or injury that occurs during the probationary period is covered.
• C) Typical waiting periods for disability insurance range from 30 days to a year.
• D) Policies with a guaranteed renewability provision are generally more expensive initially than noncancelable policies.
• E) Typical probationary periods for disability insurance range from 90 days to a year.

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Definitions:

Debt-Equity Ratio

This ratio, a test of financial leverage, divides a company's liabilities by its stockholders' equity.

Total Debt

The sum of all short-term and long-term liabilities held by an entity.

Total Assets

Total assets are the sum of all current and non-current assets owned by a company, reflecting its overall resources available for use in operations or for sale.

PE Ratio

The Price-to-Earnings Ratio (PE Ratio) is a valuation metric used to measure a company's current share price relative to its per-share earnings.