LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client asks whether he should insure against the cost of dental work for his family. The analysis should treat dental as:
- A budgeting matter with occasional major costs, ranking below income and catastrophic risks
- BA catastrophic exposure comparable to a long disability, requiring the highest priority
- CAn uninsurable expense, since routine dental costs are predictable and recurring
- DA provincial responsibility, so no private coverage is required for a working family
Correct answer: A) A budgeting matter with occasional major costs, ranking below income and catastrophic risks
Dental costs are mostly frequent and modest, which makes them a cash-flow question rather than a financial catastrophe, though major work can still justify coverage.
Why the other options are wrong
- BA dental bill does not threaten the household's solvency the way a lost income does.
- CDental plans are sold widely and do cover routine and major work.
- DProvincial plans cover dental care only in narrow circumstances.
Exam tip
Rank needs by severity: dental is cash flow, disability is catastrophe.
Common mistake
Selling rich dental coverage to a family with no disability protection.
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.