Mississippi Property & Casualty Practice Exam

What percentage of retroactive benefits is paid for the initial days of disability if it lasts beyond a certain period?

1. 50%

2. 66.66%

3. 75%

4. 100%

The correct answer is: 66.66%

The correct answer is 66.66%, which reflects the portion of retroactive benefits that are paid for the initial days of disability when it extends beyond a specified period. In many workers' compensation systems and disability insurance programs, there are waiting or elimination periods before full benefits kick in. Once this period has elapsed, the claimant begins to receive retroactive benefits for the days of disability leading up to the official start of payments. The calculation of these benefits is usually structured to provide a percentage of the claimant's earnings, and in this case, the 66.66% represents the typical rate used for benefit payments in situations like this within the framework of Mississippi's regulations and common practices in other jurisdictions. Understanding this percentage is crucial for both claimants and insurers in accurately determining the amount payable during the initial days of a disability claim.