LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client in a physically demanding trade cannot afford full disability coverage. The needs analysis should consider:
- AInsuring his spouse instead, since a policy on the lower-risk life costs less for the same benefit
- Accident-only coverage as an interim layer, with its limits clearly explained
- CDropping coverage altogether, since partial protection creates a false sense of security
- DA critical illness policy instead, since it will pay whatever causes the client to stop work
Correct answer: B) Accident-only coverage as an interim layer, with its limits clearly explained
Accident-only coverage is cheaper and genuinely useful in a trade where injury is the dominant cause of claim, provided the client understands that illness is not covered.
Why the other options are wrong
- AInsuring the wrong life leaves the household's main income unprotected.
- CSome protection against the likeliest cause of loss is better than none.
- DCritical illness pays only on listed conditions, not on any cause of work stoppage.
Exam tip
Accident-only is a compromise, not a substitute; say so plainly.
Common mistake
Presenting accident-only coverage as full disability protection.
What this tests
CISRO competency component 1.3 — 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.