LLQP Accident & Sickness · Component 3.2 · 25% of the exam
A 30-year-old employee with employer-paid group LTD at 66% taxable to a cap below her salary. The most suitable individual recommendation is:
- ANothing further, since a 66% group benefit already meets the insurer's participation limit
- BCancelling the group LTD and replacing it with an individual policy of the same amount
- Individual DI sized to the after-tax gap above the group benefit, aligned to the LTD start, with FPO
- DAccident-only coverage to top up the group benefit at the lowest possible premium
Correct answer: C) Individual DI sized to the after-tax gap above the group benefit, aligned to the LTD start, with FPO
Top-up coverage fills the amount gap and adds portability and a better definition. Alignment of waiting periods avoids offset waste.
Why the other options are wrong
- AThe cap and tax leave a real gap.
- BGroup coverage is a valuable base.
- DAccident-only is inadequate.
Exam tip
Group + individual top-up: fill the after-tax gap, align waiting periods.
Common mistake
Sizing the top-up on the gross group benefit.
What this tests
CISRO competency component 3.2 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Accident & Sickness module. Written against the published curriculum.
More from component 3
- An underwriter assigns a disability applicant to occupational class 2 rather than class 4. The practical effect is that:
- A disability applicant discloses a back condition that resolved four years ago with no recurrence. The likely underwriting outcome is:
- Financial underwriting for an individual disability application exists to:
- A critical illness applicant's mother and sister both had breast cancer before fifty. The underwriter is likely to:
- An applicant for long-term care coverage is seventy-two. The insurer is most likely to require:
- Group long-term disability coverage within the non-evidence maximum is issued without individual medical questions because:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.