LLQP Accident & Sickness · Component 1.1 · 35% of the exam
A client is on maternity leave and receiving employment insurance benefits. For an individual disability application the agent should recognize that:
- AHer employment insurance benefits are the income to insure, since that is what she receives now
- BMaternity leave is an occupational hazard that attracts a temporary rating on the disability policy
- CShe cannot be insured until the child reaches school age and she returns to full-time work
- Insurers generally underwrite on her pre-leave earnings, and may limit coverage while she is away
Correct answer: D) Insurers generally underwrite on her pre-leave earnings, and may limit coverage while she is away
Insurers look through a temporary leave to the client's regular occupation and earnings, though some limit the amount issued or the definition applied until the client is back at work.
Why the other options are wrong
- AEmployment insurance is a temporary benefit, not the earned income the policy replaces.
- BParental leave is not a hazard and carries no rating of its own.
- CThere is no rule barring coverage during parental leave.
Exam tip
Underwrite the regular occupation and earnings, not the temporary leave.
Common mistake
Telling a client on leave that she must wait until she returns to apply.
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.