Life & Health Insurance Practice Exam 2025 – Your All-in-One Guide to Exam Success!

Permanent partial disability refers to a situation where an individual experiences a lasting impairment that limits their ability to perform certain tasks or work functions, even if they can still engage in some activities. A loss of a finger is a clear example of permanent partial disability because it typically results in a permanent reduction in the individual’s ability to perform specific duties or tasks that require the full use of their hands. This impairment could affect their overall work capabilities, particularly in jobs requiring fine motor skills.

In contrast, a broken leg with full recovery does not represent permanent partial disability since the individual fully recovers and regains complete functionality. A sprained ankle requiring rest might involve temporary disability or impairment, but it’s not classified as permanent, whereas a chronic condition with fluctuating symptoms may cause ongoing issues but does not necessarily lead to a fixed impairment affecting work capabilities to the extent that a loss of a finger does. Therefore, the correct classification of permanent partial disability aligns with the lasting impact and reduced capacity attributed to a loss of a finger.