LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client bought a hospital cash plan advertised on television. In the review the agent should explain that it:
- AProvides income replacement while the client is unable to work following the admission
- BReimburses the actual cost of hospital care, so it duplicates the provincial hospital benefit
- CCovers the cost of a private room and any drugs administered during the hospital stay
- Pays a fixed amount for each day in hospital and is not tied to expenses or to income
Correct answer: D) Pays a fixed amount for each day in hospital and is not tied to expenses or to income
A hospital cash plan is an indemnity-free daily payment triggered only by confinement, which limits its value because most disabilities involve little or no hospital time.
Why the other options are wrong
- AIt responds to confinement, not to inability to work.
- BIt pays a flat daily amount rather than reimbursing any cost.
- CRoom upgrades and drugs are covered, if at all, by extended health plans.
Exam tip
Hospital cash pays per day in hospital, nothing more.
Common mistake
Over-valuing a hospital cash plan in the coverage inventory.
What this tests
CISRO competency component 1.2 — 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.