LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A group short-term disability plan's benefit is usually expressed as:
- AA monthly amount payable to the member's sixty-fifth birthday if the disability continues
- BThe reimbursement of medical expenses the member incurs during the period of absence
- CA lump sum paid at the start of the disability to cover the member's immediate costs
- A percentage of weekly earnings, payable for a limited number of weeks after a short wait
Correct answer: D) A percentage of weekly earnings, payable for a limited number of weeks after a short wait
Short-term plans bridge the first weeks of an absence, and their design in weeks rather than months is what makes them dovetail with the long-term plan's elimination period.
Why the other options are wrong
- APayment to age sixty-five describes long-term disability.
- BExpense reimbursement is the function of an extended health plan.
- CA lump sum is not how short-term disability is structured.
Exam tip
Short-term is weekly and short; long-term is monthly and long.
Common mistake
Describing short-term disability as a lump sum benefit.
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.