LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client asks whether his group LTD benefit will keep pace with inflation during a long claim. The agent should check for:
- AA survivor benefit, which continues payments to the family if he dies on claim
- BA waiver of premium, which stops deductions while the claim continues
- A cost-of-living adjustment, without which a long claim loses purchasing power
- DA future purchase option, which lets him raise the benefit while on claim
Correct answer: C) A cost-of-living adjustment, without which a long claim loses purchasing power
COLA indexes benefits in payment. Many group plans lack it. The curriculum lists COLA among riders; its absence is a gap for long disabilities.
Why the other options are wrong
- ASurvivor benefits concern death, not inflation.
- BWaiver of premium concerns premiums, not benefit indexing.
- DFPO is an individual DI feature exercised while healthy, not on claim.
Exam tip
Check for COLA on long-term benefits; a 20-year claim without indexing loses much of its value.
Common mistake
Assuming group LTD benefits are indexed.
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.