Life & Health Insurance Exam (National Portion)Health InsuranceMedium
A client suffered a back injury and is unable to perform the duties of their own occupation, but they could perform a less demanding job. Their disability income policy states that benefits are payable only if the insured is unable to perform 'any occupation for which they are reasonably suited by education, training, or experience.' What type of definition of total disability does this policy use?
- AAny Occupation
- BOwn Occupation
- CResidual Disability
- DPartial Disability
Show answer & explanationAnswer & explanation
Correct answer: A. Any Occupation
The 'any occupation' definition of total disability is very restrictive. It requires the insured to be unable to perform any occupation for which they are reasonably suited, not just their specific job. The scenario indicates the client could do a less demanding job, so an 'any occupation' policy might not pay.
Why the other options are wrong
- B. An 'own occupation' policy would pay if the client cannot perform their specific job, which they cannot.
- C. Residual disability pays a benefit based on the reduction of earnings, not a definition of total inability to work.
- D. Partial disability refers to being able to perform some but not all duties of their own occupation, usually with reduced income.
Any Occupation Disability Definition
A restrictive definition of total disability in which benefits are paid only if the insured is unable to perform any occupation for which they are reasonably suited by education, training, or experience, not just their current job.
- Most restrictive definition.
- Considers other jobs.
- Harder to qualify for benefits.
Memory trick: Disability: Own Job or Any Job?