LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A DI policy's 'issue and participation limits' refer to:
- The insurer's maximum benefit on one life, and the maximum total benefit from all sources
- BThe insurer's share of the disability market in each province where it holds a licence
- CThe premium payment modes — annual, semi-annual, monthly — the insurer makes available
- DThe number of separate disability policies a single client is permitted to own at once
Correct answer: A) The insurer's maximum benefit on one life, and the maximum total benefit from all sources
Issue limits cap the insurer's own exposure; participation limits cap the combined benefit including other insurers' and group coverage. Both enforce the return-to-work incentive.
Why the other options are wrong
- BMarket share is irrelevant to underwriting limits.
- CPremium modes are unrelated.
- DThe limits are on benefit amounts, not policy count.
Exam tip
Issue limit = this insurer's max. Participation limit = all sources combined.
Common mistake
Ignoring existing group LTD when applying for individual DI.
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.