Law Society of Ontario (LSO) Paralegal Practice Exam

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What characterizes Income Replacement Benefits under SABS?

Applicable only to retirees
Calculated based on 70% of employment income
Available immediately after the accident
Limited to a maximum of $100/week

The correct answer is: Calculated based on 70% of employment income

Income Replacement Benefits (IRBs) under the Statutory Accident Benefits Schedule (SABS) are indeed characterized by being calculated based on 70% of an individual's gross employment income prior to the accident, subject to a maximum cap. This structure is designed to provide financial support to individuals who are unable to work due to injuries sustained in a motor vehicle accident. The determination of the benefit amount involves taking into account the individual's pre-accident wages and deriving the benefit as a percentage of that income, recognizing the economic impact of their inability to work. This 70% calculation is significant as it aims to provide a substantial level of support while ensuring that claimants are not receiving more in benefits than they would have earned if they were working. Understanding this characterization helps clarify the intent behind income replacement benefits, which is to assist injured parties in maintaining a level of financial stability post-accident while they recover and navigate the impacts on their employment.