An insured covered under a Disability Income policy is disabled and collecting benefits for two months, then returns to work and is disabled again from the same cause. What type of disability does this represent?

This scenario describes a recurrent disability. In disability insurance, a recurrent disability refers to instances where the insured becomes disabled again from the same cause after having returned to work for a certain period. Here, the individual was initially disabled and received benefits for two months, then returned to work, only to face another disability stemming from the same cause.

This specific classification is crucial in determining how insurance benefits are paid. Often, policies will treat recurrent disabilities differently than new disabilities. For instance, a recurrent disability might allow for a quicker resumption of benefits or could be covered under the original policy period, depending on the specifics outlined in the insurance contract.

Understanding the definition of recurrent disability is key for both insurers and policyholders as it directly influences claims processing and eligibility for continued benefits after re-employment.