LLQP Accident & Sickness · Component 4.2 · 10% of the exam
A group LTD claimant is told to apply for CPP disability. This is because:
- Group plans require claimants to apply for offsetting benefits, and may deduct an estimated CPP amount otherwise
- BApplying is optional, since the group plan pays the full formula benefit whether or not CPP is approved
- CThe insurer wants to cancel the claim, since a CPP approval proves the disability is permanent
- DCPP disability is paid on top of the group benefit, so applying increases the claimant's total income
Correct answer: A) Group plans require claimants to apply for offsetting benefits, and may deduct an estimated CPP amount otherwise
Offset provisions require pursuit of primary benefits. The claimant's total is unchanged but the plan's cost falls.
Why the other options are wrong
- BPlans generally require it.
- CIt is a standard offset requirement.
- DCPP disability is offset against the group benefit, so it does not add income.
Exam tip
Group LTD: must apply for CPP disability; estimated offset if not.
Common mistake
Telling a claimant CPP is 'optional'.
What this tests
CISRO competency component 4.2 — Provide customer service during the validity period of the coverage — which is weighted at 10% of the Accident & Sickness module. Written against the published curriculum.
More from component 4
- The agent's role in the claims process is to:
- A client with a non-cancellable DI policy stops paying premiums after a dispute with the insurer about a claim. The agent should warn that:
- When a client moves to another province, the agent should:
- A client asks to reduce the waiting period on his in-force disability policy. The agent should explain that the change:
- A client's disability policy lapsed six weeks ago for non-payment. The agent should:
- A client on claim asks whether she must keep paying premiums. The accurate answer depends on:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.