LLQP Accident & Sickness · Component 1.1 · 35% of the exam
A client is caring for an aging parent and has cut back to four days a week. The agent should record that:
- ACaregiving has no bearing, since only the client's own health and occupation affect the analysis
- BHe should apply on his previous full-time salary, since the reduction is expected to be temporary
- His reduced earnings are now the insurable amount, and the caregiving may itself be a future need
- DCaregiving hours count as earned income, so the insurer will treat him as working full time
Correct answer: C) His reduced earnings are now the insurable amount, and the caregiving may itself be a future need
Financial underwriting rests on current earnings, and a client already absorbing a family care burden is exactly the person for whom long-term care planning becomes relevant.
Why the other options are wrong
- AReduced hours change the insurable income, which is central to the analysis.
- BApplying on a salary the client no longer earns will be cut back at underwriting.
- DUnpaid caregiving generates no earnings and is not counted by any insurer.
Exam tip
Current documented earnings set the ceiling, whatever the reason for the reduction.
Common mistake
Applying on the income a client used to earn.
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.