LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A long-term care contract written on an 'income' or indemnity-free basis pays:
- A stated amount once the triggers are met, whether or not receipts are produced
- BThe provincial plan's assessed rate for the level of care the insured requires
- CThe difference between the cost of care and the insured's other sources of income
- DOnly for care provided in a licensed facility by a regulated provider
Correct answer: A) A stated amount once the triggers are met, whether or not receipts are produced
An income-style contract pays on the trigger alone, which suits families providing informal care because no invoices from a licensed provider are required.
Why the other options are wrong
- BThe benefit is set by the contract, not by a provincial assessment.
- CThe benefit is not reduced by the insured's other income.
- DRestricting payment to licensed facilities describes a reimbursement design.
Exam tip
Income-style pays on the trigger; reimbursement pays on the receipt.
Common mistake
Recommending a reimbursement contract to a family planning to care at home.
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.