California Life-Only & Accident and Health AgentAccident and Health InsuranceMedium
A 45-year-old self-employed artist has a disability income policy. She becomes totally disabled and is unable to perform the duties of her occupation as an artist. Her policy defines total disability as the inability to perform the 'material and substantial duties of her own occupation'. Which type of disability definition does her policy most likely contain?
- AAny Occupation
- BPartial Disability
- CResidual Disability
- DOwn Occupation
Show answer & explanationAnswer & explanation
Correct answer: D. Own Occupation
The 'Own Occupation' definition of disability means the insured is considered totally disabled if they cannot perform the duties of their specific job, even if they could perform another type of work. This is generally more favorable to the insured.
Why the other options are wrong
- A. 'Any Occupation' requires the insured to be unable to perform the duties of any occupation for which they are reasonably suited by education, training, or experience, which is a stricter definition.
- B. Partial Disability refers to the inability to perform some, but not all, of the duties of one's occupation, typically resulting in reduced benefits.
- C. Residual Disability provides benefits for a loss of income due to a disability that causes a reduction in earning capacity, even if the insured can still work part-time in their own occupation.
Own Occupation Disability
A disability income policy definition where an insured is considered totally disabled if they cannot perform the material and substantial duties of their specific job, even if they could work in a different capacity.
- Most liberal definition for the insured.
- Focuses on the insured's specific job.
- Often more expensive than 'Any Occupation' policies.
Memory trick: An artist's own work defines their disability.