LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client asks whether he should keep an old DI policy with a small benefit now that he has group LTD. The agent should consider:
- ADoubling the old policy so it matches the group LTD benefit
- BLeaving the decision to the client, since old policies are outside the review and the client knows them best
- Whether its definition, non-can premium and lack of offsets outweigh its small size
- DCancelling it immediately, since group LTD makes it redundant
Correct answer: C) Whether its definition, non-can premium and lack of offsets outweigh its small size
Old individual DI often has favourable terms unavailable today. Group LTD can be lost with the job. The analysis compares the policy's features, not just its amount.
Why the other options are wrong
- AAn increase requires underwriting and may not be needed.
- BExisting coverage is central to the review, whatever its age.
- DCancelling without analysis may discard irreplaceable terms.
Exam tip
Old DI policies: check definitions, non-can status and offsets before cancelling.
Common mistake
Cancelling individual DI because group LTD 'covers it'.
What this tests
CISRO competency component 1.2 — 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.