Arkansas Life and Health Insurance Practice Exam

A disability income policy with an elimination period of at least 90 days must:

1. Be cancelled after 2 years

2. Cover claims resulting from either sickness or accidents

3. Not cover job-related injuries

4. Only cover accidents

The correct answer is: Be cancelled after 2 years

A disability income policy with an elimination period of at least 90 days must be cancelled after 2 years. This requirement ensures that the policyholder has a waiting period before benefits are paid out, helping to reduce the financial burden on the insurance company. By cancelling the policy after 2 years, it also allows the insurance company to reassess the policyholder's eligibility for coverage based on their current circumstances and needs.