LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client has an old disability policy with an 'any occupation' definition from the outset. In the review the agent should:
- ARecommend immediate cancellation, since any-occupation coverage is worthless to a professional
- BTell the client the definition will convert to own occupation after the policy has run for ten years
- Record the definition as a limitation and consider whether own-occupation coverage should be added
- DTreat the definition as equivalent to own occupation, since both pay when the client cannot work
Correct answer: C) Record the definition as a limitation and consider whether own-occupation coverage should be added
A narrow definition means benefits stop once the client could do any suitable work, which is a real gap for a specialist, but the existing coverage still has value and should not simply be discarded.
Why the other options are wrong
- AThe policy still pays for a severe disability and may carry a guaranteed premium.
- BDefinitions are fixed by the contract and do not improve with time.
- DThe two definitions produce very different outcomes for a trained specialist.
Exam tip
Record the definition; it decides when benefits stop.
Common mistake
Comparing two policies on amount alone and ignoring the definition.
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.