LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client belongs to a health spending account through work. In the coverage review this is best described as:
- AA savings plan the member funds personally and withdraws from tax-free at any time
- BA disability plan that pays a monthly benefit when the member cannot work
- CAn insured extended health plan with defined co-insurance and annual maximums per category
- A pool of employer dollars the member can apply to eligible health and dental expenses
Correct answer: D) A pool of employer dollars the member can apply to eligible health and dental expenses
A health spending account is a defined allocation rather than an insured benefit, so it caps the employer's cost and leaves the member exposed once the allocation is spent.
Why the other options are wrong
- AThe employer funds it, and the amounts are set by the plan rather than by the member.
- BIt reimburses expenses; it pays no income and responds to no disability.
- CThere is no insurance element, no co-insurance and no per-category maximum.
Exam tip
A spending account is a budget, not an insured benefit.
Common mistake
Counting a spending account as comprehensive health coverage.
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.