Question 6014 of 287 · Texas Life, Accident and Health Agent Exam

The relation of earnings to insurance provision allows the insurer to

Exactly one answer is correct.

Areduce the benefit if the total disability income benefits exceed the insured's earnings at the time of disability
Bcancel the policy if the insured earns more than a stated amount, based on the company's internal procedures, as determined by the insurer's own guidelines
Cincrease the benefit when the insured's earnings rise
Drequire the insured to report earnings once a year

Show solution

Correct answer to question 6014

A: reduce the benefit if the total disability income benefits exceed the insured's earnings at the time of disability

Explanation

This optional provision prevents overinsurance and the incentive to remain disabled.