Certified Disability Management Specialist (CDMS) Practice Exam

The statement is true because within disability insurance contracts, the definition of disability serves as the foundation for determining eligibility for benefits under both short-term and long-term policies. The specific language used in the definition outlines the circumstances that qualify an individual as disabled, which is crucial for both types of coverage.

In short-term disability policies, the definition usually includes conditions related to an individual's ability to perform job duties for a limited timeframe, typically ranging from a few weeks to a few months. Long-term disability policies, on the other hand, may have a broader or different definition since they cater to prolonged incapacitation which impacts an individual's ability to work over an extended period, possibly lasting years.

Regardless of these variations in detail, the core principle remains that the definition of disability is what activates coverage in any disability policy. Thus, understanding and interpreting this definition is critical for both policy holders and disability management specialists to ensure appropriate claims processing and support for individuals who are unable to work due to illness or injury.