LLQP Accident & Sickness · Component 2.2 · 30% of the exam
A 'business overhead expense' benefit can sometimes be added to personal DI as a rider. Its purpose is:
- To reimburse eligible fixed business expenses during the owner's disability, alongside the personal benefit
- BTo increase the personal income benefit above the insurer's usual issue and participation limits for the class
- CTo cover the owner's employees for disability under a single policy at group rates negotiated for the business
- DTo fund the purchase of a disabled partner's share of the business under the terms of a buy-sell agreement
Correct answer: A) To reimburse eligible fixed business expenses during the owner's disability, alongside the personal benefit
Whether as a rider or stand-alone, BOE covers overhead. The rider form may be simpler to administer.
Why the other options are wrong
- BIt covers overhead, not personal income.
- CEmployee coverage is group insurance.
- DBuyout is a separate product.
Exam tip
BOE as rider or policy: overhead reimbursement during disability.
Common mistake
Using personal DI to fund overhead.
What this tests
CISRO competency component 2.2 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Accident & Sickness module. Written against the published curriculum.
More from component 2
- A group benefits booklet lists AD&D coverage alongside life and LTD. The AD&D benefit pays:
- A hospital indemnity (hospital cash) policy pays:
- Employment Insurance sickness benefits are available to:
- Which government program coordinates with an individual DI policy through a possible offset AND also affects the definition of insurable income?
- A group plan's 'eligibility waiting period' (probationary period) is:
- A CI policy that is 'convertible' allows the insured to:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.