LLQP Accident & Sickness · Component 2.1 · 30% of the exam
Workers' compensation differs from a private disability policy in that it:
- APays in addition to a private policy without affecting the private benefit
- BCovers any disability at all, provided the worker was employed at the time that it began
- CPays benefits that are taxable in the worker's hands like employment income
- Covers only work-related injury and illness, at a capped percentage of earnings
Correct answer: D) Covers only work-related injury and illness, at a capped percentage of earnings
The compensation scheme responds only to work-related causes, replaces a capped share of earnings and is a listed offset in most private and group disability contracts.
Why the other options are wrong
- AThese benefits are commonly offset against private and group coverage.
- BNon-occupational causes fall outside the scheme entirely.
- CWorkers' compensation benefits are generally not taxable.
Exam tip
Work-related cause, capped percentage, commonly offset.
Common mistake
Counting workers' compensation as coverage for illness away from work.
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.