LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A hospital indemnity (hospital cash) policy pays:
- ANothing unless the hospital stay exceeds the policy's waiting period of thirty days
- A fixed daily amount for each day confined to hospital, regardless of actual cost
- CA monthly income for the duration of any disability that involved a stay in hospital
- DThe hospital's actual charges for a semi-private or private room during the stay
Correct answer: B) A fixed daily amount for each day confined to hospital, regardless of actual cost
Hospital cash is a niche supplementary product; with short hospital stays its value is limited.
Why the other options are wrong
- AIt pays from the first day of confinement in most contracts.
- CIt is tied to confinement, not disability.
- DIt pays a fixed amount, not the bill.
Exam tip
Hospital cash = fixed daily amount while confined.
Common mistake
Overselling hospital indemnity as health coverage.
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:
- 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:
- A 'retirement protection' rider on a DI policy:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.