LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client's employer offers a health spending account. In articulating her extended health need this means:
- A fixed allowance covers eligible costs; recurring costs above it and catastrophic drugs remain
- BDental coverage is unnecessary because the account reimburses all dental work in full
- CHer health needs are fully met because the account has no list of eligible expenses
- DReimbursements are taxable income, so the account is worth less than group coverage
Correct answer: A) A fixed allowance covers eligible costs; recurring costs above it and catastrophic drugs remain
An HSA is a capped, flexible allowance. It is useful for routine costs but not a substitute for catastrophic drug coverage. The need is what exceeds the HSA.
Why the other options are wrong
- BDental may or may not be covered within the account's limit.
- CA health spending account is a capped allowance, not comprehensive coverage.
- DHSA reimbursements are generally non-taxable outside Quebec's rules.
Exam tip
HSA = capped allowance; check catastrophic drug protection separately.
Common mistake
Treating an HSA as comprehensive health coverage.
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.