LLQP Accident & Sickness · Component 1.1 · 35% of the exam
A client plans a twelve-month unpaid sabbatical next year. The agent should explain that:
- Applying now, while he is working and insurable, is generally better than waiting until he returns
- BHis coverage will be suspended during the sabbatical and reinstated automatically when he returns
- CHe must cancel his existing coverage for the year and reapply when he is earning again
- DInsurers require sabbatical plans to be disclosed to the provincial regulator before a policy is issued
Correct answer: A) Applying now, while he is working and insurable, is generally better than waiting until he returns
Insurability and documented income are both easiest to establish while the client is working, and a policy already in force is not disturbed by a later unpaid period.
Why the other options are wrong
- BIndividual coverage continues while premiums are paid; there is no automatic suspension.
- CCancelling coverage before a year without income leaves him exposed and may not be replaceable.
- DRegulators do not receive or approve individual applications.
Exam tip
Buy insurability while the client still has it.
Common mistake
Postponing an application until after a planned break in earnings.
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.