LLQP - Life License Qualification Program Accident and Sickness Insurance Questions and Answers

Question 1

An architect is unable to work at her own occupation due to a car accident, but she is able to earn an income as a university lecturer.
Under a standard 'own occupation' disability policy, how would her eligibility for benefits be affected?

Accepted Answer

She would receive full disability benefits regardless of her income from lecturing.

Answer

Her disability benefits would be reduced by the amount she earns from lecturing.

Answer

She would be ineligible for benefits because she can work in another capacity.

Answer

She would only receive partial benefits for a limited time, typically 24 months.

Question 2

A small business owner purchases a Business Overhead Expense (BOE) insurance policy. If the owner becomes disabled, which of the following expenses would typically NOT be covered by the policy?

Accepted Answer

The owner's personal salary and lost profits.

Answer

Rent payments for the business premises.

Answer

Salaries for employees of the business.

Answer

Utility bills such as hydro and heat.

Question 3

What is the primary trigger for a benefit payout under a Critical Illness insurance policy?

Accepted Answer

The diagnosis of a specific, covered medical condition.

Answer

The inability to perform daily activities without assistance.

Answer

The loss of income resulting from a sickness or injury.

Answer

The requirement for hospitalization for more than 30 days.

Question 4

In an Accidental Death and Dismemberment (AD&D) policy, the amount paid for the loss of a limb is referred to as the:

Accepted Answer

Capital Sum

Answer

Principal Sum

Answer

Face Value

Answer

Maturity Benefit

Question 5

A graphic designer is recovering from an illness. She can now work two days a week, earning 40% of her pre-disability income. Her disability policy includes a residual disability benefit. How will this benefit likely be calculated?

Accepted Answer

The benefit will be a percentage of her total disability payment, proportional to her 60% loss of income.

Answer

She will receive 100% of her total disability benefit since she is still partially disabled.

Answer

She will receive no benefit because she has returned to work.

Answer

She will receive a flat-rate partial disability benefit, typically 50% of the full amount, for a limited time.

Question 6

Which of the following best describes the 'any occupation' definition of disability in a long-term disability policy?

Accepted Answer

The insured is unable to perform the duties of any job for which they are reasonably suited by education, training, or experience.

Answer

The insured is unable to perform the duties of their own specific occupation at the time the disability begins.

Answer

The insured is unable to work in any job whatsoever, regardless of their qualifications.

Answer

The insured suffers a presumptive total disability, such as the loss of sight in both eyes.