LLQP Accident & Sickness · Component 1.3 · 35% of the exam
An employer wants to attract and retain staff and asks how group A&S benefits help. The agent should explain that group benefits:
- AAre a taxable benefit to the employer that must be reported on its return each year
- BHave little effect on retention because most employees never make a claim
- CAre usually restricted to senior staff, so they help retain executives only
- Are valued by employees, hard to buy alone at that cost, and deductible to the business
Correct answer: D) Are valued by employees, hard to buy alone at that cost, and deductible to the business
Group benefits are a core part of compensation. The curriculum lists advantages of group plans for the employer and employee, including competitive advantage in hiring and tax treatment.
Why the other options are wrong
- AGroup premiums are generally deductible to the employer, not taxable to it.
- BBenefits are a recognized recruiting and retention tool.
- CGroup plans cover all eligible employees, not only executives.
Exam tip
Group benefits: recruit/retain, deductible to employer, mostly non-taxable to employees (except provincial variations and LTD depending on who pays).
Common mistake
Presenting group benefits only as a cost.
What this tests
CISRO competency component 1.3 — Assess the client's needs and situation — which is weighted at 35% of the Accident & Sickness module. Written against the published curriculum.
More from component 1
- The single most important fact for sizing a client's disability income need is:
- A client's beneficiaries for assets are listed in the fact-finding. Why does this matter for A&S planning?
- A client asks why the agent wants to know how assets are owned (jointly or individually). In the A&S context the answer is:
- A client mentions a back injury five years ago that fully resolved. The agent should:
- Which element of a client's situation most affects the definition of disability that should be recommended?
- Which of the following health facts is most relevant to a client's disability insurance situation?
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.