LLQP Accident & Sickness · Component 2.1 · 30% of the exam
LTC policies pay benefits on either a 'reimbursement' or an 'indemnity (income)' basis. The difference is:
- Reimbursement pays actual expenses with receipts; indemnity pays the stated amount once triggered
- BIndemnity requires receipts from licensed care providers, while reimbursement pays without them
- CThere is no practical difference, since both pay the daily maximum once eligible care begins
- DReimbursement pays double the daily benefit for care received in a provincially licensed facility
Correct answer: A) Reimbursement pays actual expenses with receipts; indemnity pays the stated amount once triggered
Indemnity (income-style) LTC is simpler and funds informal care; reimbursement can be cheaper but requires documentation and approved providers. The curriculum lists LTC benefit payment options.
Why the other options are wrong
- BIndemnity does not require receipts; that is the reimbursement basis.
- CThe bases differ materially in what is needed to be paid.
- DReimbursement is capped at actual expenses.
Exam tip
LTC: reimbursement = receipts; indemnity = fixed amount, use freely.
Common mistake
Assuming an LTC benefit can pay a family caregiver under a reimbursement policy.
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.