Why does Northwestern ask the questions they do in the "Request for Continuation of Disability Benefits" form?

Answer

Daniel, disability insurers ask these questions in order to obtain information relating to your level of activity. NWM can say you’ve traveled to Europe and S. America on vacation this year therefore we believe that based on your travel activity you can go back to work in your occupation. Also, some policies contain foreign residency limitations which limit the period a disability insurer must pay you benefits if you reside more than a specific amount of time outside of the U.S. Your policy may contain this type of provision. For the same purpose they will ask about your engagement in other business activity or ownership. They will reason that if you are able to own another business or engage in other business activity then you could work in your former occupation. As for the bankruptcy question, if you file for bankruptcy and fail to declare your disability insurance benefits and policy as a form of income or potential income then the disability insurer can claim that you are judicially estopped from seeking disability benefits under the policy even if you had dutifully paid premiums for years.