14 Oa) Ob) Oc) Od) Ninety days after purchasing a disability insurance policy, Harriet is diagnosed with cancer, a condition that is covered by her policy. 60 days after the diagnosis, Harriet makes a claim with her insurer and at the same time, provides all of the necessary medical proof of her condition. Unfortunately, 6 months after the initial diagnosis, Harriet dies from her condition. Which of the following CORRECTLY describes why Harriet's claim was denied? The covered condition manifested too soon after the policy was put in force. Harriet did not provide the medical proof within the appropriate time frame. Harriet did not survive the diagnosis for a long enough time period. Harriet did not make the claim within the appropriate time frame. 18 Giovanni and Vittoria are a middle-aged working couple with one daughter in university. Giovanni is a carpenter and Vittoria is a nurse who works part-time. Neither Giovanni nor Vittoria have employer plans or group coverage and they approach you about disability insurance. They qualify for disability insurance with a combined monthly benefit of $4,000. You discuss riders that can be added and they want their coverage to be protected from inflation. A rider is added which, after the first year of claim, the benefit is indexed to the rate of inflation, on a compound basis, based on the Consumer Price Index (CPI) of the previous year. The rider has a maximum index rate of 5% but allows a carry- forward of unused indexing. Which of the following statements is correct? If the Consumer Price Index (CPI) is 5% in year 2 and 7% in year 3, 2% indexing may be carried forward. If the Consumer Price Index (CPI) is 4% in year 2 and 6% in year 3, 1% indexing may be carried forward. If the Consumer Price Index (CPI) index is 4% in year 2 and 6% in year 3, there is no indexing that may be carried forward. If the Consumer Price Index (CPI) index is 3% in year 2 and 5% in year 3,1% indexing may be carried forward Oa) Ob) Oc) Od)