LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A disability policy with an 'integrated' or 'social insurance' benefit is designed to:
- Pay an additional amount that reduces if the insured qualifies for a listed government benefit
- BReplace government benefits entirely, so the insured need not apply for them
- CPay double benefits to insureds who are refused government disability benefits
- DPay a benefit that increases automatically whenever government disability benefits are approved
Correct answer: A) Pay an additional amount that reduces if the insured qualifies for a listed government benefit
Integrated designs price a supplementary layer on the assumption that government benefits may or may not be approved, which lowers the premium in exchange for the offset.
Why the other options are wrong
- BThe insured is normally required to apply for government benefits.
- CNo contract pays double for a government refusal; the supplement simply continues.
- DGovernment approval reduces the supplementary layer rather than increasing it.
Exam tip
Integrated means the supplement shrinks when government benefits start.
Common mistake
Adding the integrated supplement and government benefits together in a projection.
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.