Question

An insured covered under a Disability Income policy is disabled and collecting benefits for a period of two months. He returns to work and is again disabled from the same cause, whereupon benefits continue to be paid. This is an example of which of the following?

1) Recurrent Disability
2) Partial Disability
3) Permanent Disability
4) Temporary Disability

Answer 1

The correct option is A). The scenario presents a case of Recurrent Disability, where a person receives disability benefits, returns to work, and then becomes disabled again from the same cause, continuing to receive the benefits.

Step-by-step explanation:

The case described is an example of a Recurrent Disability. This term applies when an insured individual, after a period of disability for which they have received benefits, returns to work but then becomes disabled again due to the same or related cause. The period during which the recurrence of disability must happen for the benefits to continue without a new waiting period varies in different policies but is typically within a certain amount of days or months from the initial claim.

Given the prevalence of disability in the United States and the fact that unhealthy lifestyles, dangerous working conditions, and lack of economic diversity can contribute to a higher incidence of disability, disability insurance plays a crucial role in providing financial support to individuals unable to work due to health-related issues.