LLQP Accident & Sickness · Component 1.1 · 35% of the exam
A client is an apprentice electrician whose income will rise substantially as he completes his hours. The needs analysis should:
- ADelay any recommendation until he is fully qualified and his earnings have stabilized
- BSize the benefit on the journeyperson wage he expects, since that is the income he will lose
- Base coverage on current income and plan for increases through a future purchase option
- DApply for the maximum the insurer allows, since apprentices are underwritten as skilled tradespeople
Correct answer: C) Base coverage on current income and plan for increases through a future purchase option
Financial underwriting is based on current documented earnings, so a growth path is covered by an option to buy more later rather than by insuring income the client has not yet earned.
Why the other options are wrong
- ADelay leaves an apprentice with hazardous duties uninsured during his most exposed years.
- BAn expected future wage is not insurable income today and will be cut back at underwriting.
- DApprentices are rated on their actual duties, and the maximum is set by current income.
Exam tip
Insure today's income; buy the right to add coverage later.
Common mistake
Applying for the income a client expects to earn rather than the income earned now.
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.