Hawaii Insurance License Practice Exam

Which is a characteristic of temporary partial disability benefits?

1. Equal to pre-injury wages

2. Variability based on job type

3. Percentage of income loss

4. Flat rate for all employees

The correct answer is: Percentage of income loss

Temporary partial disability benefits are designed to provide financial support to workers who have temporarily lost a portion of their ability to earn due to a work-related injury, but who can still perform some work. The key characteristic of these benefits is that they are based on a percentage of the income that the worker has lost as a result of the injury. This means that the benefits compensate individuals for the financial impact of their reduced ability to work. For example, if an injured worker was earning a certain amount before the injury and can now only work part-time at a reduced wage, the benefits would cover a percentage of the income that they are no longer able to earn due to their condition. This system is designed to help maintain a level of financial stability for employees while they recover. The other options do not accurately represent the nature of temporary partial disability benefits. Attributes such as being equal to pre-injury wages or having a flat rate for all employees either misinterpret the guidelines or fail to reflect the individualized nature of these benefits, which accounts for the variations in workers' earnings and job types.