The national guide covers disability income basics: definitions of total disability, elimination and benefit periods, residual benefits, riders, and business uses such as key person, buy-sell and business overhead expense. Delaware adds a few standards in 18 Del. C. 3321 and Regulation 1304.

The national concepts in brief

• The elimination period is a waiting period measured in time. The benefit period is the longest time benefits are paid.
• Own-occupation definitions pay when the insured can't do his own job. Any-occupation definitions pay only if he can't do any job suited to his education, training and experience.
• A recurrent disability provision treats a relapse within the stated time as part of the original claim, so no new elimination period applies.

Delaware standards

• Total disability: can't be defined only as being unable to do "any occupation whatsoever." Definitions based on the regular occupation, or on occupations suited to education, training or experience, are permitted (Reg. 1304-5).
• Recurrent disability: the period that separates two disabilities can't be longer than six months (Reg. 1304-7.2.10).
• Relation of earnings to insurance (3321):
  • only in a selectively underwritten policy with a loss-of-time benefit payable for at least 52 weeks
  • it can't reduce combined benefits below the lesser of $300 or the full benefit
• Group policies pay loss-of-time benefits at least monthly (3523).
• Guaranty: the Life and Health Insurance Guaranty Association covers disability income up to $300,000 (4403).

Exam traps

• "Unable to perform any occupation whatsoever" isn't allowed as the only definition of total disability.
• Recurrent disability separation can't exceed 6 months.
• The relation-of-earnings floor is the lesser of $300 or the full benefit, and it is allowed only on policies with 52-week benefits.