Module 3

Question 1

A plan that protects against the loss of income due to illness or injury

Answer 1

Income replacement plan

Question 2

Without formal documentation, the provision of full pay when sick or injured for a short period

Answer 2

Informal sick leave plan

Question 3

Self‐funded benefits

Answer 3

Uninsured coverage

Question 4

The right to receive a benefit is no longer

conditional on continued employment

Answer 4

Vesting

Question 5

Can be forfeited, carried forward or paid out

Answer 5

Unused sick leave entitlements

Question 6

Sick leave benefits paid out without an illness‐

related absence

Answer 6

Buyback provision

Question 7

Benefits paid through payroll usually for salaried employees

Answer 7

Salary continuance plan

Question 8

Can be tiered and/or salary related

Answer 8

Salary continuance plan benefit schedule

Question 9

Full salary is paid for a number of weeks, followed by a lower percentage for the balance

Answer 9

Tiered benefit schedule

Question 10

Duration of benefits based on full salary increased with length of service

Answer 10

Service‐related benefit schedule

Question 11

The length of service at which benefits progress

to 100% of earnings

Answer 11

Service requirement threshold

Question 12

Formal income replacement plans for shorter

period of disability

Answer 12

Weekly indemnity/STD plans

Question 13

Reduced EI rates for employers that have an
income replacement plan at least equal to the EI
disability benefit

Answer 13

EI premium reduction

Question 14

The rate at which employers pay for Employment

Insurance

Answer 14

EI premium rate

Question 15

An approved employer plan that tops up EI payments

Answer 15

Supplementary unemployment benefits (SUB)

Question 16

A plan that pays before and after the EI benefit

period

Answer 16

Carve out plan

Question 17

A plan that pays before and after EI benefit period as well as a period declined by EI

Answer 17

Wrap around plan

Question 18

Unable to perform the functions of their own job

due to illness or injury

Answer 18

Definition of disability

Question 19

A period of time before disability benefits commence

Answer 19

Elimination period

Question 20

The maximum number of weeks a disability benefit is payable

Answer 20

Benefit duration

Question 21

Reducing disability benefits by private loss of income protection plans is prohibited

Answer 21

Collateral benefits rule

Question 22

Disabilities payable under Workers’ Compensation are not covered

Answer 22

Nonoccupational basis

Question 23

An employer arrangement to pay benefit if an employee suffers a loss of employment income due to illness or injury

Answer 23

Definition of wage loss replacement under IT‐428

Question 24

Successive period of disability due to related or

unrelated causes

Answer 24

Recurrent disability

Question 25

Right to recover cost of disability benefits from an award for lost earnings as a result of a claim against a third party

Answer 25

Third‐party subrogation