A lawyer, Mr. Chen, has an 'Any Occupation' disability insurance policy. He earns $150,000 annually. Due to a stroke, he can no longer practice law, but he could potentially work as a legal researcher, earning $40,000 annually. The policy defines 'Any Occupation' as the inability to perform the duties of any occupation for which the insured is reasonably fitted by education, training, or experience. The policy also includes a 'residual disability' benefit that pays a portion of the benefit if income is reduced by more than 20% due to disability. Which of the following best describes his situation?

Question: A lawyer, Mr. Chen, has an 'Any Occupation' disability insurance policy. He earns $150,000 annually. Due to a stroke, he can no longer practice law, but he could potentially work as a legal researcher, earning $40,000 annually. The policy defines 'Any Occupation' as the inability to perform the duties of any occupation for which the insured is reasonably fitted by education, training, or experience. The policy also includes a 'residual disability' benefit that pays a portion of the benefit if income is reduced by more than 20% due to disability. Which of the following best describes his situation?

Answer options: ✅ Mr. Chen is not considered totally disabled under the 'Any Occupation' definition, but he would likely qualify for residual disability benefits.

• Mr. Chen is considered totally disabled because his former income is significantly higher than his potential new income.
• Mr. Chen is not considered disabled at all, as he can still work in a related field.
• Mr. Chen would only be considered totally disabled if he could not perform any work whatsoever.

Correct answer: Mr. Chen is not considered totally disabled under the 'Any Occupation' definition, but he would likely qualify for residual disability benefits.

Explanation: Under an 'Any Occupation' definition, Mr. Chen is not totally disabled because he can perform work as a legal researcher for which he is fitted. However, his significant income reduction (over 20%) would likely qualify him for residual disability benefits.