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Kim is struck in the rear of her candy apple red sports car. Her injuries are severe, leaving her unable to work as a hostess

Kim is struck in the rear of her candy apple red sports car. Her injuries are severe, leaving her unable to work as a hostess at a high-end restaurant in New Orleans. The restaurant offers employees disability insurance, which she has elected as part of her benefits package. She pays for 50 percent of the insurance on a pre-tax basis. The employer pays the remainder of the policy premium. Her monthly benefit is $2,500 per month. Which of the following is correct?

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