LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client asks how a CI benefit differs from a disability benefit in terms of use. The agent should explain:
- Both are paid to the insured to use freely: CI a lump sum, DI a monthly amount
- BCI must be repaid to the insurer if the insured recovers fully within the survival period
- CBoth must be spent on medical care, with receipts submitted to the insurer for approval
- DDI is paid directly to the treating physician, while CI is paid to the insured personally
Correct answer: A) Both are paid to the insured to use freely: CI a lump sum, DI a monthly amount
Both are indemnity-free, use-unrestricted benefits. That freedom is why CI is valuable: the client chooses between treatment, debt, income replacement for a spouse or recovery time.
Why the other options are wrong
- BCI benefits are not loans and are never repaid on recovery.
- CThere is no spending restriction on either benefit.
- DDI is paid to the insured, not to a physician.
Exam tip
CI and DI pay the insured with no strings on use.
Common mistake
Telling a client CI must be used for medical expenses.
What this tests
CISRO competency component 1.3 — Assess the client's needs and situation — which is weighted at 35% of the Accident & Sickness module. Written against the published curriculum.
More from component 1
- The single most important fact for sizing a client's disability income need is:
- A client's beneficiaries for assets are listed in the fact-finding. Why does this matter for A&S planning?
- A client asks why the agent wants to know how assets are owned (jointly or individually). In the A&S context the answer is:
- A client mentions a back injury five years ago that fully resolved. The agent should:
- Which element of a client's situation most affects the definition of disability that should be recommended?
- Which of the following health facts is most relevant to a client's disability insurance situation?
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.