LLQP Accident & Sickness · Component 1.1 · 35% of the exam
A client is a stay-at-home parent with no earned income. For disability insurance purposes:
- Income-replacement DI is largely unavailable, so critical illness is considered instead
- BShe should be enrolled in her spouse's group LTD plan as a dependant
- CShe qualifies for business overhead coverage on the household's fixed costs
- DShe should be insured for the same monthly DI benefit as her earning spouse, since the household depends on both
Correct answer: A) Income-replacement DI is largely unavailable, so critical illness is considered instead
DI insures earned income; without it, insurers offer little or nothing. The client's real exposure — a serious illness — can be addressed by critical illness insurance, and the earning spouse's coverage protects the household.
Why the other options are wrong
- BGroup LTD covers employees; there is no dependant LTD coverage.
- CBusiness overhead coverage is for a business owner's fixed costs, not a household.
- DWith no earned income there is nothing for DI to replace.
Exam tip
No earned income → DI mostly unavailable; consider critical illness instead.
Common mistake
Attempting to sell income replacement to a client with no income.
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.