LLQP Accident & Sickness · Component 1.1 · 35% of the exam
A client holds two part-time jobs, each with its own small group plan. For the disability needs analysis the agent should:
- AIgnore both group plans, since coverage under two plans cancels out and neither will pay
- Combine both incomes and both plans, checking each plan's definition, offsets and all-sources maximum
- CUse only the higher-paying job, since a disability claim can be made against one employer at a time
- DInsure the difference between the two salaries, since that is the amount the client would actually lose
Correct answer: B) Combine both incomes and both plans, checking each plan's definition, offsets and all-sources maximum
Total earned income is what stops at disability, and each plan's terms differ, so both must be documented before a gap can be calculated. The all-sources maximum in one plan may also limit what the other pays.
Why the other options are wrong
- ATwo plans do not cancel out; they coordinate through their offset provisions.
- CBoth incomes stop, so confining the analysis to one job understates the loss.
- DThe difference between two salaries has no relationship to the income at risk.
Exam tip
Two jobs means two incomes at risk and two sets of plan terms to read.
Common mistake
Building the analysis on one employer's T4 when the client has two.
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.