LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A 'catastrophic' or 'high-deductible' drug plan is designed to:
- Protect against very high drug costs above a substantial deductible, at a lower premium
- BCover dental work that exceeds the annual maximum of the regular dental plan for the year
- CReplace the provincial plan for drugs so that members no longer need to carry a provincial drug card
- DCover routine prescriptions in full from the first dollar, with no co-insurance or deductible
Correct answer: A) Protect against very high drug costs above a substantial deductible, at a lower premium
Catastrophic design trades routine coverage for protection against ruinous costs, mirroring the insurance principle of covering the large, rare loss.
Why the other options are wrong
- BDental is a separate benefit and is not part of a drug plan design.
- CIt supplements provincial coverage.
- DRoutine costs fall under the deductible.
Exam tip
Catastrophic drug plan: high deductible, protects against large costs, lower premium.
Common mistake
Recommending first-dollar drug coverage when the client's real risk is catastrophic cost.
What this tests
CISRO competency component 2.1 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Accident & Sickness module. Written against the published curriculum.
More from component 2
- A group benefits booklet lists AD&D coverage alongside life and LTD. The AD&D benefit pays:
- A hospital indemnity (hospital cash) policy pays:
- Employment Insurance sickness benefits are available to:
- Which government program coordinates with an individual DI policy through a possible offset AND also affects the definition of insurable income?
- A group plan's 'eligibility waiting period' (probationary period) is:
- A CI policy that is 'convertible' allows the insured to:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.