(Appendices) James currently earns $3,000 per month. He has an individual disability income policy that will pay...

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(Appendices) James currently earns $3,000 per month. He has an individual disability income policy that will pay $1,800 monthly if he is totally disabled. The policy has a 60-day elimination period and also provides residual disability benefits.

Benefits are payable to age 65.

a. Assume that James is severely injured in an auto accident and cannot work for four months; how much will he collect under his policy?

b. Assume that James returns to work at the beginning of the third month of disability but can only work part-time until he recovers completely. His part-time earnings are $1,500. What is the amount, if any, that James can collect under his policy? Explain your answer. LO3

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Real Communication An Introduction

ISBN: 9781457662928

3rd Edition

Authors: Dan O'Hair, Mary Wiemann, Dorothy Imrich Mullin

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