Mark earns $18,000 a month as a physician. He becomes disabled under an own occupation definition policy with a 50% prior wages clause because he lost his hearing in a hunting accident. He returns to work as a researcher making $3,000 per month, a reduction of 83.33%. He has a residual benefit provision in his disability policy that calls for monthly benefits of $12,000. What will be his total income per month including any residual benefits? $3,000 (one time payment) $12,000 (the greater of his salary or the disability benefits) $13,000 (the $3,000 plus $10,000 from the residual) $15,000 (the $12,000 plus the $3,000)
Mark earns $18,000 a month as a physician. He becomes disabled under an own occupation definition policy with a 50% prior wages clause because he lost his hearing in a hunting accident. He returns to work as a researcher making $3,000 per month, a reduction of 83.33%. He has a residual benefit provision in his disability policy that calls for monthly benefits of $12,000. What will be his total income per month including any residual benefits? $3,000 (one time payment) $12,000 (the greater of his salary or the disability benefits) $13,000 (the $3,000 plus $10,000 from the residual) $15,000 (the $12,000 plus the $3,000)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Mark earns $18,000 a month as a physician. He becomes disabled under an own occupation definition policy with a 50% prior wages clause because he lost his hearing in a hunting accident. He returns to work as a researcher making $3,000 per month, a reduction of 83.33%. He has a residual benefit provision in his disability policy that calls for monthly benefits of $12,000. What will be his total income per month including any residual benefits?
$3,000 (one time payment)
$12,000 (the greater of his salary or the disability benefits)
$13,000 (the $3,000 plus $10,000 from the residual)
$15,000 (the $12,000 plus the $3,000)
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