The national guide covers disability income policies:

• Definitions of disability: own occupation and any occupation.
• Timing: the elimination period and the benefit period.
• Partial benefits: residual and partial disability.
• Other features: presumptive disability, recurrent disability and waiver of premium.

Hawaii adds a state program the exam tests directly: Temporary Disability Insurance (TDI) under HRS Chapter 392. TDI requires employers to provide partial wage replacement for disabilities that happen off the job. Workers' compensation covers the on-the-job injuries. Like workers' comp and the Prepaid Health Care Act, TDI is administered through the DLIR.

National concepts in brief

• The elimination period is the waiting time before benefits start. The benefit period is the longest time benefits are paid for one disability.
• An own-occupation definition is more generous to the insured than any-occupation.
• Residual disability pays a reduced benefit when the insured returns to work at lower earnings.
• Presumptive disability treats certain losses (sight, hearing, speech, use of two limbs) as total disability.
• A recurrent disability clause treats a relapse within a stated time as part of the same claim, with no new elimination period.

What TDI covers

• Covered: disability from sickness, accident, pregnancy, termination of pregnancy or organ donation that is not work-connected (HRS 392-3, 392-21).
• "Disability" means total inability to perform the duties of one's employment.
• Not covered: work injuries, which belong to workers' compensation.

Eligibility

In the 52 weeks before the disability, the employee must have had at least 14 weeks with 20 or more hours of paid work each, and total wages of at least $400 (HRS 392-25).

Benefits

No TDI is paid for weeks covered by (HRS 392-28):

• unemployment benefits;
• Social Security disability;
• workers' compensation total disability benefits.

Funding

• Employers provide TDI through one of these (HRS 392-41):
  • an authorized insurer;
  • a deposit of securities or a surety bond;
  • approved self-insurance; or
  • certain existing plans.
• The employer may withhold half the cost from the employee, but never more than 0.5% of weekly wages up to the wage base. The employer pays the rest (HRS 392-43).

Other Hawaii points

• Accident and health line: disability income can be sold under the accident and health line. The life line also includes disability income benefits (HRS 431:9A-107).
• Relation of earnings to insurance: Hawaii's optional clause cannot cut total monthly benefits below the lesser of $200 or the sum of the benefits (HRS 431:10A-106(5)).
• Genetic information: Hawaii's ban on using it in accident and health coverage does not apply to disability income insurance (HRS 431:10A-118).
• Guaranty association: disability income benefits are protected up to $300,000 (HRS 431:16-203).

Common exam traps

• TDI covers off-the-job disability. Work injuries go to workers' comp.
• The TDI numbers to know: 58% benefit, 7-day wait, 26 weeks maximum, claim within 90 days.
• Eligibility requires 14 weeks of 20+ hours and $400 in wages within 52 weeks.
• The employee's TDI share is capped at 0.5% of weekly wages.
• TDI is not paid on top of unemployment, Social Security disability or workers' comp total disability.