LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client's existing coverage includes a hospital indemnity policy paying a fixed daily amount while hospitalized. The review should treat it as:
- ADisability insurance, since it pays while the client cannot work
- A limited supplementary benefit paid only during hospital stays, not income replacement
- CLong-term care coverage, since it pays for institutional stays
- DComprehensive health coverage that fills the gaps in the provincial plan, since hospital costs are the largest exposure
Correct answer: B) A limited supplementary benefit paid only during hospital stays, not income replacement
Hospital indemnity products pay small fixed amounts tied to hospitalization. With shorter stays, their value has declined. They fill a narrow niche.
Why the other options are wrong
- AIt pays for confinement, not inability to work.
- CIt does not cover long-term care facilities or home care.
- DIt covers hospitalization days only.
Exam tip
Hospital cash policies are narrow; do not count them as DI or EHC.
Common mistake
Over-valuing a hospital indemnity policy 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.