LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client's group STD plan is registered under the EI premium reduction program. In the review, this tells the agent that:
- The plan meets EI sickness standards and the employer shares the EI premium saving
- BThe plan replaces LTD, so a long-term disability plan is unnecessary
- CThe plan is inadequate and must be upgraded before it can be renewed, since registration flags plans below the EI standard
- DThe plan's benefits are taxable regardless of who pays the premium
Correct answer: A) The plan meets EI sickness standards and the employer shares the EI premium saving
Registration requires benefits at least equal to EI sickness benefits and passing part of the premium reduction to employees. It signals a sound STD design.
Why the other options are wrong
- BSTD is short-term; LTD is a separate benefit.
- CRegistration indicates adequacy relative to EI, not inadequacy.
- DTaxability depends on who pays the premium, not on registration.
Exam tip
EI-registered STD plans meet EI standards and share premium savings with employees.
Common mistake
Recommending replacement of a registered STD plan without cause.
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.