California Property & Casualty Broker-AgentCasualty InsuranceMedium
A California employer has a Workers' Compensation policy. An employee sustains a work-related injury that results in a permanent impairment, but the employee is still able to return to work in a modified capacity. What type of disability benefit would typically apply in this situation?
- APermanent Total Disability
- BTemporary Total Disability
- CPermanent Partial Disability
- DTemporary Partial Disability
Show answer & explanationAnswer & explanation
Correct answer: C. Permanent Partial Disability
Permanent Partial Disability (PPD) benefits are paid when an injured employee has reached maximum medical improvement (MMI) and has a permanent impairment, but is still capable of working, even if in a reduced or modified capacity. The benefit amount is based on the severity of the impairment.
Why the other options are wrong
- A. Permanent Total Disability is for when an employee is permanently unable to return to any gainful employment.
- B. Temporary Total Disability is for when an employee is temporarily unable to work at all.
- D. Temporary Partial Disability is for when an employee can work but at reduced hours or duties while still recovering.
Permanent Partial Disability (PPD)
Permanent Partial Disability (PPD) benefits in Workers' Compensation are paid for a permanent impairment that results from a work-related injury, but which does not totally incapacitate the employee from all gainful employment.
- Applies after Maximum Medical Improvement (MMI) is reached.
- Calculated based on the impairment rating and scheduled benefits.
- Allows the employee to return to work, potentially in a modified role.
Memory trick: Disability: Temp or Perm, Total or Partial!