41. An insured individual purchases a disability policy with a waiver of premium rider on January 1. The individual is disabled on June 1. On July 1, he receives proof of permanent and total disability, and submits a claim. He begins receiving benefits on July 15. When are his premiums waived?
Answer: B
Premiums are waived starting from June 1.
The premiums for the disability policy are waived beginning on June 1, the date the individual became disabled. This is in accordance with the terms of the waiver of premium rider, which stipulates that premiums are waived during the period of total disability.
A) 01-Jan
This option is incorrect because while the policy was purchased on January 1, the waiver of premiums does not take effect until the individual becomes disabled. Thus, premiums cannot be waived prior to the onset of disability.
B) 01-Jun
This option is correct as it reflects the date when the individual became disabled. According to the policy terms, the waiver of premium rider activates on the day the insured is deemed to be permanently and totally disabled.
C) 01-Jul
This option is incorrect because it suggests that the waiver of premiums begins on July 1, which is after the individual has already been disabled since June 1. The waiver is effective from the date of disability, not a month later.
D) 15-Jul
This option is also incorrect as it implies that premiums would only be waived starting from the date benefits are received. However, the waiver of premiums is based on the date of disability, which is June 1, not when benefits are disbursed.
Conclusion
The correct answer is definitively B) 01-Jun, as it aligns with the activation of the waiver of premium rider upon the individual's date of disability. All other options fail to recognize that the waiver is contingent upon the onset of total disability, making them inaccurate in this context.