IFSE Institute Updated LLQP Exam Questions and Answers by deborah

Disability insurance benefits can be subject tointegrationoroffset provisions, especially if multiple sources of DI coverage exist. These provisions prevent the insured from receiving a total disability benefit amount that exceeds a certain percentage of pre-disability income. Vladimir should inform Vanessa that her benefits might be adjusted to avoid over-insurance and to align with her income levels. This aligns with the LLQP materials, which emphasize that overlapping coverage sources may lead to reductions in benefits from one source to maintain proportionality with earned income​.

In this scenario, Rowan, an employee of a construction company, suffers an injury while on the job. Since the injury occurred in the workplace, he would be eligible for benefits under Workers' Compensation. Workers' Compensation is designed to cover employees who suffer work-related injuries or illnesses, providing them with benefits that include coverage for medical expenses and income replacement during their period of disability​.

As the accident happened while Rowan was performing work duties, Workers' Compensation will likely cover his wage loss for the duration he is unable to work due to the injury. Employment Insurance (EI) would not be applicable here, as EI sickness benefits are intended for non-work-related illnesses or injuries. The Canada Pension Plan (CPP) also would not apply, as it provides long-term disability benefits primarily for severe and prolonged disabilities that prevent individualsfrom working in any capacity. Therefore, option D is the correct answer, as Workers' Compensation is specifically designed for cases like Rowan’s​.

Comprehensive and Detailed Explanation:

Luc earns $60,000/year ($5,000/month), Marie earns $24,000/year ($2,000/month), totaling $7,000/month. Expenses are $3,500/month. If Luc is disabled, Marie’s $2,000 leaves a $1,500 shortfall. However, Luc needs $3,500/month to fully replace expenses, assuming Marie’s income isn’t relied upon (Chapter 2:Insurance to Protect Income).

Option A: Insufficient; $1,500 + $2,000 = $3,500 but assumes Marie’s income.

Option B: Correct; $3,500 ensures full coverage.

Option C: Excessive; over-insures.

Comprehensive and Detailed Explanation:

Zaheb, as the agent, should educate employees via an information program to clarify coverage (e.g., generic vs. brand name drugs) (Chapter 8:Group Plan Specifics).

Option A: Incorrect; Alumo lacks expertise.

Option B: Incorrect; MIB doesn’t explain plans.

Option C: Correct; agent’s role.

Option D: Incorrect; insurer delegates to agent.