LLQP Accident & Sickness · Component 2.2 · 30% of the exam
A hospital confinement rider on a disability policy provides that:
- Benefits begin without the waiting period while the insured is confined to hospital
- BThe benefit period is extended by the number of days the insured spends in hospital
- CThe insured must be hospitalized before any disability benefit becomes payable
- DThe insurer pays the hospital directly for the cost of the insured's accommodation
Correct answer: A) Benefits begin without the waiting period while the insured is confined to hospital
The rider recognizes that a hospital admission is unambiguous evidence of disability, so it removes the waiting period for the days of confinement and improves early cash flow.
Why the other options are wrong
- BThe benefit period is not extended by days in hospital.
- CHospitalization is not a precondition of a disability claim.
- DHospital costs are covered by provincial and extended health plans.
Exam tip
The hospital rider buys away the waiting period during confinement.
Common mistake
Reading the rider as a hospital expense benefit.
What this tests
CISRO competency component 2.2 — 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.