California Life and Health Insurance Practice Exam

How is Dyan described in relation to her insurance company's assessment?

1. She is fully disabled

2. She is working part-time and receiving lost income benefits

3. She is not eligible for benefits

4. She is considered permanently disabled

The correct answer is: She is working part-time and receiving lost income benefits

Dyan is characterized as working part-time and receiving lost income benefits, indicating that her situation qualifies for a benefit that compensates for her reduced earnings. This suggests that while she may still be able to engage in some work, her ability to perform full-time duties is hampered due to her current circumstances. Being eligible for lost income benefits typically means that Dyan's insurance policy recognizes the financial impact of her partial disability. Such benefits aim to provide financial support when an individual cannot work to their full capacity, enabling them to manage their living expenses despite the reduced income. The other options suggest scenarios that either indicate full disability or a status of ineligibility for benefits, which would not align with Dyan's situation as described. Being fully disabled or permanently disabled implies a complete inability to work, whereas being not eligible for benefits altogether removes financial assistance. Dyan’s partial work status and receipt of benefits highlight the nuances of her condition and her recognition under the insurance policy.