Question

25 sachin works as a mechanic in his auto repair firm, which employs three people. following a severe injury that he sustained, he was off work for 10 months during which he received disability benefits from his insurer. sachin returns to work after 10 months even though he is unable to perform some of his duties. he receives a reduced salary and a reduced benefit from the insurer. which rider was added to sachins disability insurance policy? a2rvdtjwdytyefledwdycna0ngpudz09
a. cost of living adjustment
b. reduced disability benefit
c. residual disability benefit
d. future purchase option
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Explanation:

To determine the rider, we analyze each option:

• Cost of living adjustment: Adjusts benefits for inflation, not related to reduced duties/salary. Eliminate.
• Reduced disability benefit: Not a standard rider term; the scenario involves partial disability (unable to do some duties), not a general "reduced benefit" rider. Eliminate.
• Residual disability benefit: Applies when an insured can work but with reduced capacity (partial disability), resulting in reduced salary and reduced benefits. This matches Sachin’s situation (returns to work but can’t perform all duties, gets reduced salary/benefit).
• Future purchase option: Allows increasing coverage in the future, irrelevant here.

Answer:

c. Residual disability benefit