Health · Chapter 16 · Policy Structure
Change of Occupation · Relation of Earnings · Exclusions
Definition
Change of occupation: switch to a MORE hazardous job → benefit reduced; LESS hazardous → premium reduced (+ refund of excess). Relation of earnings to insurance: with multiple policies, total benefits can't exceed lost income — each pays pro-rata. Standard exclusions: war, self-inflicted injuries, military service, non-commercial aviation, illegal occupations.
Exam tip
More dangerous job changes the BENEFIT; safer job changes the PREMIUM. (Group plans use coordination of benefits instead of relation-of-earnings.)
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms