Mississippi Property & Casualty Practice Exam

What type of benefits are paid retroactively for the initial days of a prolonged disability?

1. Termination benefits

2. Partial benefits

3. Disability benefits

4. Survivor benefits

The correct answer is: Disability benefits

Disability benefits are specifically designed to provide financial assistance to individuals who are unable to work due to a prolonged disability. These benefits often include payments that are issued retroactively for the period of time that the individual was disabled before the benefits were formally approved and started. This retroactive payment mechanism ensures that the individual is compensated for the days they were unable to work due to the disability, right from the onset of the condition. In contrast, termination benefits generally relate to compensations provided upon the end of employment, while partial benefits refer to benefits given when an individual is still able to perform some work duties but is not fully employed. Survivor benefits are allocated to beneficiaries of individuals who have passed away, providing them with financial support in the absence of the deceased. Understanding the specific functions and definitions of disability benefits clarifies why they are the correct choice when discussing retroactive financial support for disabilities.