New York Child Abuse Identification and Reporting Practice Exam

What kind of insurance payment involves periodic payments per the Time Payment of Claims provision?

1. Sickness benefits

2. Retirement annuity payments

3. Long-term disability payments

4. Income replacement payments

The correct answer is: Long-term disability payments

The correct answer involves long-term disability payments, as they typically require periodic payments that align with the Time Payment of Claims provision. This provision allows for the structured distribution of benefits over time instead of a lump sum, which is particularly relevant for individuals who are unable to work due to ongoing health issues. Long-term disability insurance is designed to replace a portion of a person’s income after a waiting period, thus making it essential to provide these payments in a sustained manner over the period the individual is disabled. In contrast, other types of payments, such as sickness benefits, might not operate under the same extended timeline since they are often for shorter-term issues. Retirement annuity payments usually start after a certain age or retirement date, and thus their framework differs from the ongoing nature of disability payments. Income replacement payments can vary widely based on the policy terms, but they often do not specify adherence to a time payment provision in the same structured way that is characteristic of long-term disability insurance.