Claims payable to a Disability Income Insured, even when the insured can continue to work, are the result of a

• A. Presumptive Disability
• B. Partial Disability
• C. Residual Disability
• D. Scheduled Disability

Answer: (A)

Presumptive disability applies when the policy pays full disability benefits for certain total impairments, even if the insured can still work. When the impairment meets defined conditions—such as total loss of sight, total loss of hearing, loss of speech, or paralysis—the insurer treats the loss as total and pays the full benefit regardless of the ability to earn income. This is why claims would be payable at the full benefit amount despite ongoing employment.

Partial disability means you can work but with some limitations and usually reduced benefits; residual disability uses a formula to reduce benefits as earnings return after a total disability, and scheduled disability provides fixed payments for specific conditions.