LLQP Accident & Sickness · Component 2.2 · 30% of the exam
A residual disability benefit is payable when the insured:
- AHas returned to work full time and is earning the same income as before the disability
- BHas been disabled for longer than the policy's stated maximum benefit period
- CIs totally unable to work but has not yet satisfied the waiting period stated in the contract
- Returns to work with reduced duties or hours and suffers a measurable loss of income
Correct answer: D) Returns to work with reduced duties or hours and suffers a measurable loss of income
Residual coverage pays a proportion of the full benefit based on the percentage of income lost, which allows a claimant to work part time without forfeiting the claim.
Why the other options are wrong
- AA full recovery of income ends the residual claim.
- BBenefits stop at the end of the benefit period, whatever the insured's condition.
- CThe waiting period must be satisfied before any benefit, residual or total, is paid.
Exam tip
Residual = back at work, income down, benefit proportional.
Common mistake
Assuming any return to work ends a disability claim.
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.