LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client on a provincial disability assistance program asks whether a private disability benefit would affect it. The accurate answer is:
- APrivate benefits are ignored entirely, since the program is funded from general tax revenue
- BReceiving private disability benefits is prohibited while a person receives provincial assistance
- CThe province tops up private benefits to the program's maximum, so total income always rises
- Private benefits are income-tested against the program and can reduce or end the assistance
Correct answer: D) Private benefits are income-tested against the program and can reduce or end the assistance
Provincial assistance is a last-resort, means-tested benefit, so other income reduces it dollar for dollar in most designs and the interaction must be explained before a recommendation is made.
Why the other options are wrong
- AThe programs are explicitly income-tested and count other benefits.
- BNothing prohibits holding private coverage; the assistance is simply reduced.
- CAssistance falls as other income rises; it does not top income up.
Exam tip
Means-tested assistance is reduced by private income.
Common mistake
Recommending coverage without checking the effect on income-tested benefits.
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.