LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client asks whether she can be over-insured for disability. The agent should explain:
- AOnly if she also holds a life insurance policy with the same insurer
- Yes: issue and participation limits cap combined benefits at a percentage of income
- COnly in Quebec, where the civil code limits disability benefits from all sources
- DNo, because each insurer underwrites its own policy without regard to the others
Correct answer: B) Yes: issue and participation limits cap combined benefits at a percentage of income
Participation limits and relation-of-earnings provisions prevent a claimant from receiving more disabled than working. Articulating the need must respect these ceilings.
Why the other options are wrong
- ALife insurance is unrelated to disability limits.
- CParticipation limits apply in every province.
- DInsurers ask about all other coverage and apply combined limits.
Exam tip
Total disability benefits from all sources are capped at a percentage of income.
Common mistake
Stacking individual DI on group LTD beyond the participation limit.
What this tests
CISRO competency component 1.3 — Assess the client's needs and situation — which is weighted at 35% of the Accident & Sickness module. Written against the published curriculum.
More from component 1
- The single most important fact for sizing a client's disability income need is:
- A client's beneficiaries for assets are listed in the fact-finding. Why does this matter for A&S planning?
- A client asks why the agent wants to know how assets are owned (jointly or individually). In the A&S context the answer is:
- A client mentions a back injury five years ago that fully resolved. The agent should:
- Which element of a client's situation most affects the definition of disability that should be recommended?
- Which of the following health facts is most relevant to a client's disability insurance situation?
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.