LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client with a modest income relies on a provincial disability assistance program as her only coverage. The agent should understand that such programs:
- Are income- and asset-tested social assistance at subsistence level, not income replacement
- BPay a benefit equal to the client's previous salary until age 65
- CReplace income fully for anyone whose disability is medically certified
- DAre a form of insurance funded by the client's provincial tax contributions, with benefits tied to earnings history
Correct answer: A) Are income- and asset-tested social assistance at subsistence level, not income replacement
The curriculum lists provincial health and disability plans under government coverage. Social assistance is means-tested and minimal, and receipt may be affected by the client's assets and other income.
Why the other options are wrong
- BAmounts are far below salary and are means-tested.
- CAssistance is subsistence-level and reduced by other income and assets.
- DIt is a government program, not an insurance contract.
Exam tip
Provincial disability assistance = means-tested subsistence. Not a substitute for DI.
Common mistake
Counting social assistance as a resource in a middle-income client's plan.
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.