Life License Qualification Program (LLQP) Practice Exam

What provision allows for the covering of a second disability without a new elimination period if it's due to the same cause as a previous disability?

1. Residual Disability provision

2. Presumptive Disability provision

3. Recurrent Disability provision

4. Partial Disability provision

The correct answer is: Recurrent Disability provision

The correct provision related to the covering of a second disability without a new elimination period when it is due to the same cause as a previous disability is the Recurrent Disability provision. This provision is crucial in disability insurance because it recognizes that individuals may experience recurring health issues as a result of the same condition. When a policy has a Recurrent Disability provision, it stipulates that if a policyholder becomes disabled again due to the same cause as a prior disability, the waiting period typically required (known as the elimination period) may be waived. This is beneficial for insured individuals, as they can receive benefits without having to endure the often financially and emotionally draining process of waiting through a new elimination period for what is effectively the same issue they have previously addressed. In contrast, the other options represent different types of provisions that serve distinct purposes: - The Residual Disability provision provides support for individuals who can still work but are earning less due to their disability, offering benefits that alleviate the income loss. - The Presumptive Disability provision outlines certain conditions that are considered so severe that the insured is deemed disabled without the need for further proof, such as the loss of limbs or sight. - The Partial Disability provision covers situations where the insured is partially disabled and