LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client has group short-term disability (STD) that pays for 17 weeks and group LTD starting at week 18. His individual DI policy has a 90-day waiting period. The review should note:
- AThe three coverages are perfectly coordinated because each starts when the last ends
- BThe STD plan is redundant and the client should opt out to save the deduction, since the individual policy starts sooner
- The individual policy overlaps STD and is offset, so a longer waiting period saves premium
- DThe group LTD should be cancelled because the individual policy already covers the long term at a guaranteed premium
Correct answer: C) The individual policy overlaps STD and is offset, so a longer waiting period saves premium
Coordination of waiting periods with existing group coverage avoids paying for individual benefits that are offset anyway. The curriculum stresses the impact of offsets and integration of benefits.
Why the other options are wrong
- AA 90-day waiting period ends inside the 17-week STD period, so they overlap.
- BSTD is valuable short-term coverage; the individual waiting period is what should change.
- DGroup LTD is the base layer; individual coverage tops it up.
Exam tip
Align the individual waiting period with when group benefits end or drop; avoid paying for offset months.
Common mistake
Selling a short waiting period to a client with full STD 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.