LLQP Accident & Sickness · Component 1.1 · 35% of the exam
A client asks whether her smoking affects A&S insurance as much as it affects life insurance. The agent should say:
- AOnly travel insurance rates change, because smoking is treated as a travel risk factor
- BSmoking affects life rates only; A&S products price on occupation and health, not habits
- Smoking raises DI and CI rates, and is a major factor for CI coverage
- DOnly LTC rates change, because smoking shortens the expected period of care
Correct answer: C) Smoking raises DI and CI rates, and is a major factor for CI coverage
Smoker status affects DI and CI pricing and, for CI, is a leading risk factor for cancer, heart attack and stroke. Lifestyle is a listed factor across the module.
Why the other options are wrong
- ATravel insurance does not price on smoking status.
- BSmoking status is material for DI and CI underwriting, not just life.
- DLTC is affected, but so are DI and, especially, CI.
Exam tip
Smoking status: material for DI and CI, not just life.
Common mistake
Applying non-smoker rates on a CI policy for a recent quitter.
What this tests
CISRO competency component 1.1 — 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.