Question
Jim is an employee at a company, and he earns $2,000 a month. While driving to work, Jim gets into a serious car accident causing
Jim is an employee at a company, and he earns $2,000 a month. While driving to work, Jim gets into a serious car accident causing him serious injuries. Two months later, Jim was able to recover, but still had some permanent injuries. Nonetheless, he was able to return to work. Due to his injuries, Jim is unable to do all the duties of his job, and therefore, his salary was reduced to $1,500 a month. However, Jim has a disability-income insurance that pays $1,000 for total disability. His insurance includes a residual disability clause, that pays a pro-rata disability benefits in case of residual disability.
Calculate how much will Jim get from his disability-income insurance. Show your work.
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