LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client's provincial drug plan has an income-based deductible. In the extended health review this means:
- AThe province pays all drug costs once the client has registered with the plan
- He pays out of pocket up to the deductible, which private coverage can reduce
- CThe client has no need for private drug coverage, since the deductible protects the household
- DPrivate drug coverage is unavailable to residents of provinces with an income-based plan
Correct answer: B) He pays out of pocket up to the deductible, which private coverage can reduce
An income-tested deductible means the household absorbs a real first layer of drug cost each year, and private coverage exists to shrink or remove that layer.
Why the other options are wrong
- AThe plan pays only above the deductible, not from the first prescription.
- CA deductible is a cost to the household, which is why private coverage has value.
- DPrivate drug plans operate in every province alongside the public plan.
Exam tip
An income-based deductible is a gap, not a protection.
Common mistake
Telling a client the provincial drug plan removes the need for private 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.