Calculations:

a) $0, only the public plan applies.

b) $1,236.32, the private plan pays the same benefit as the public plan.

c) 66.67% of 75,000/12 = 4,166.67 4,166.67 - 1,236.32 = 2,930.35.

d) 4,166.67 = 66.67% of 75,000/12, there is no coordination between the private and public plans.

Answer a: False. Véronique’s group insurance plan will not pay $0 monthly but the difference between 66.67% of her monthly salary and Retraite Québec’s disability pension ($1,236.32 per month).

Answer b: False. This monthly payment is Retraite Québec’s disability pension and not the monthly amount paid by Véronique’s group insurance plan.

Answer c: Correct answer. This amount, paid by the group insurance plan, is the difference between 66.67% of Véronique’s monthly salary ($4,166.67) and Retraite Québec’s disability pension ($1,236.32). Véronique will therefore receive a monthly benefit of $2,930.35 from her group insurance since her private plan coordinates with the public plan.

Answer d: False. This amount is the total benefit paid by the public plan and the private plan. If this amount were paid by the private plan, Véronique, who also receives $1,236.32 monthly from Retraite Québec, would have a combined monthly income well over 66.67% of her salary.

References

Preparation manual: Ethics and Professional Practice (Québec), 3^rd Edition, 2016, section 1.2.3

Evaluated competency sub-component in Curriculum: 1.2 Define the other sources of law applicable to insurance of persons

Ethics and Professional Practice (Québec)

Competency: Develop an ethical professional practice, in compliance with the rules governing the insurance of persons sector

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