LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A DI policy's 'integration' or 'offset' with government benefits means:
- AThe policy is cancelled as soon as CPP disability benefits are approved for the same disability
- The benefit is reduced by CPP, workers' compensation or other specified benefits
- CThe policy pays an additional amount whenever CPP disability is also being paid to the insured
- DCPP disability must be repaid to the insurer out of the policy's monthly benefits
Correct answer: B) The benefit is reduced by CPP, workers' compensation or other specified benefits
Offsets are standard in group LTD and present in some individual policies (often as a lower-cost option). Non-integrated individual DI pays in full regardless.
Why the other options are wrong
- AThe policy continues; only the amount is affected.
- COffsets reduce, not increase, the benefit.
- DThe insurer receives nothing from CPP.
Exam tip
Check whether an individual DI policy has offsets; non-integrated coverage costs more but pays in full.
Common mistake
Assuming all individual DI is free of offsets.
What this tests
CISRO competency component 2.1 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Accident & Sickness module. Written against the published curriculum.
More from component 2
- A group benefits booklet lists AD&D coverage alongside life and LTD. The AD&D benefit pays:
- A hospital indemnity (hospital cash) policy pays:
- Employment Insurance sickness benefits are available to:
- Which government program coordinates with an individual DI policy through a possible offset AND also affects the definition of insurable income?
- A group plan's 'eligibility waiting period' (probationary period) is:
- A CI policy that is 'convertible' allows the insured to:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.