LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client injured at work receives workers' compensation benefits. In assessing existing coverage, the agent should note that workers' compensation:
- AReplaces full earnings for as long as the worker is unable to return to any job, regardless of how the disability arose
- BIs taxable income and therefore counts for less than a private benefit of the same amount
- CCovers any disability once the worker has been employed for the qualifying period
- Covers only work-related causes, replaces a capped percentage of earnings, and offsets private DI
Correct answer: D) Covers only work-related causes, replaces a capped percentage of earnings, and offsets private DI
Workers' compensation is limited to occupational causes and capped. Non-occupational disability — the majority — is not covered. Private policies integrate with it.
Why the other options are wrong
- ABenefits are a percentage of earnings subject to provincial maximums.
- BWorkers' compensation benefits are generally not taxable.
- COnly injuries and illnesses arising from work are covered.
Exam tip
Workers' comp: occupational only, capped, non-taxable, offsets private DI.
Common mistake
Treating workers' compensation as general disability coverage.
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.