LLQP Accident & Sickness · Component 3.2 · 25% of the exam
A client asks the agent to compare two disability quotes that differ in price by a significant margin. The agent should compare:
- AThe premiums alone, since the products are both disability contracts sold in the same market
- BThe insurers' advertising, since the better-known company is more likely to pay a claim without argument
- CThe commission payable on each, since the higher commission indicates the stronger contract
- Definitions, renewal provisions, residual terms, riders and exclusions alongside the premiums
Correct answer: D) Definitions, renewal provisions, residual terms, riders and exclusions alongside the premiums
A cheaper disability contract usually differs in the terms that decide whether a claim is paid, so a price comparison without a features comparison is meaningless.
Why the other options are wrong
- APrice differences almost always reflect differences in contract terms.
- BBrand recognition is not a measure of contract quality.
- CCompensation can never form part of a recommendation.
Exam tip
Compare what triggers the benefit, not just what it costs.
Common mistake
Recommending the cheaper quote without reading either contract.
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.