LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client receives a disability benefit from a motor vehicle accident scheme after a collision. For the coverage review this benefit is:
- A cause-specific income benefit that may be offset against a private disability policy
- BEquivalent to an individual disability policy, since both replace income after an accident
- CAvailable for any disability, since the scheme covers residents regardless of how they were injured
- DIrrelevant, since automobile schemes pay only for vehicle damage and medical treatment
Correct answer: A) A cause-specific income benefit that may be offset against a private disability policy
Accident benefits respond only to motor vehicle injuries and are commonly listed among the sources a private policy offsets, so they narrow rather than replace the private need.
Why the other options are wrong
- BPrivate coverage pays for illness as well as accident and is not tied to a collision.
- CThe scheme responds only to injuries arising from the use of a vehicle.
- DAutomobile accident benefit schemes do include income replacement in most provinces.
Exam tip
Accident benefits are cause-specific and often offset.
Common mistake
Counting motor vehicle accident benefits 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.