LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client asks whether her group AD&D coverage counts as disability insurance. The agent should explain:
- No; AD&D pays a lump sum for accidental death or specified losses, not disability income
- BYes, it replaces the need for LTD because it pays whenever an accident prevents work
- CYes for illness-related disability, since AD&D covers sickness as well as accidents
- DYes, fully, because AD&D and disability insurance are the same product under different names
Correct answer: A) No; AD&D pays a lump sum for accidental death or specified losses, not disability income
AD&D is a scheduled-loss benefit, not income replacement. Illness — the main cause of long-term disability — is entirely outside it.
Why the other options are wrong
- BLTD pays monthly income; AD&D pays once for a scheduled loss.
- CAD&D excludes illness entirely.
- DAD&D is a scheduled-loss product, not income replacement.
Exam tip
AD&D ≠ disability insurance. It is lump sum, accident-only, scheduled.
Common mistake
Counting AD&D as disability coverage in the needs analysis.
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.