LLQP Accident & Sickness · Component 2.2 · 30% of the exam
A 'catastrophic disability' rider pays:
- AA reduced benefit when the disability is so severe that the insured cannot manage money independently
- An additional monthly benefit when the disability involves loss of ADLs, cognitive impairment or presumptive losses
- CA lump sum to the beneficiary at the insured's death from a catastrophic illness or injury
- DA benefit for minor illnesses that would not otherwise satisfy the policy's definition of disability
Correct answer: B) An additional monthly benefit when the disability involves loss of ADLs, cognitive impairment or presumptive losses
Catastrophic riders add a layer for the worst claims, where care costs exceed ordinary living expenses. Triggers resemble LTC triggers.
Why the other options are wrong
- AIt adds to the benefit.
- CIt pays during disability, not at death.
- DIt is for severe disability only.
Exam tip
Catastrophic rider: extra monthly benefit for ADL/cognitive-level disability.
Common mistake
Confusing the catastrophic rider with the base total disability benefit.
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.