LLQP Accident and Sickness Insurance 3

Question 1

What is 'residual disability' coverage in a Canadian disability insurance policy?

Accepted Answer

Partial benefits when the insured can work but with reduced capacity

Answer

Residual disability coverage provides partial benefits when the insured can work in a reduced capacity and experiences a proportional loss of income.

Question 2

In group accident and sickness insurance in Canada, what happens to an employee's coverage when they leave the employer?

Accepted Answer

The employee may have the right to convert to an individual policy

Answer

Most group policies include a conversion privilege that allows departing employees to convert their group coverage to an individual policy without evidence of insurability.

Question 3

What is the 'relation back' doctrine as it applies to accident and sickness insurance claims in Canada?

Accepted Answer

The cause of loss is traced back to determine if it was accidental or from sickness

Answer

The relation back doctrine traces the chain of events to the original cause to determine whether a loss resulted from accident or sickness, which affects coverage and benefits.

Question 4

Which provincial body typically regulates accident and sickness insurance products in Canada?

Accepted Answer

The provincial insurance regulator or superintendent of insurance

Answer

Insurance products in Canada are regulated at the provincial level by each province's insurance regulator or superintendent of insurance.

Question 5

What is a 'cost of living adjustment' (COLA) rider in a disability insurance policy?

Accepted Answer

It increases disability benefits annually to keep pace with inflation

Answer

A COLA rider increases disability benefit payments annually, typically tied to the Consumer Price Index, to protect the purchasing power of benefits during a long-term claim.

LLQP - Life License Qualification Program Practice Test

LLQP - Life License Qualification Program Practice Test

LLQP Accident and Sickness Insurance 3