LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A group client asks what determines the need for a short-term disability plan versus relying on EI sickness benefits. The agent should explain:
- ASTD replaces LTD for employers who cannot afford to fund a long-term disability plan
- BSTD plans are prohibited where employees already qualify for EI sickness benefits through payroll
- CEI is always sufficient, so an STD plan only adds administrative cost for the employer
- EI sickness is capped and delayed; STD can pay more and sooner and bridge to LTD
Correct answer: D) EI sickness is capped and delayed; STD can pay more and sooner and bridge to LTD
STD plan design is about filling the gap between sick leave and LTD. EI sickness is a baseline resource; STD can improve on it and earn a premium reduction.
Why the other options are wrong
- ASTD covers the first months; LTD covers the long term.
- BSTD plans are standard and can be registered for an EI premium reduction.
- CEI sickness is limited in amount and timing.
Exam tip
STD design: sick leave → STD → LTD, coordinated with EI.
Common mistake
Leaving a gap between the end of STD and the start of LTD.
What this tests
CISRO competency component 1.3 — 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.