LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A disability policy contains a 'presumptive disability' provision. Its effect is to:
- APresume the insured is not disabled until a specialist certifies otherwise in writing
- BReduce the benefit to a fixed percentage for the losses listed in the provision
- Presume total disability on certain severe losses, often waiving the waiting period
- DExtend the waiting period for disabilities arising from the listed conditions
Correct answer: C) Presume total disability on certain severe losses, often waiving the waiting period
Presumptive provisions list catastrophic losses such as sight, hearing, speech or the use of two limbs and treat them as total disability without further proof of occupational incapacity.
Why the other options are wrong
- AThe presumption runs in the insured's favour, not against him.
- BThe full benefit is payable for a presumptive loss.
- DThe provision usually shortens or waives the waiting period.
Exam tip
Presumptive disability pays in full, often from day one.
Common mistake
Overlooking a presumptive clause when comparing contracts.
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.