LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client's critical illness policy was issued with a moratorium on cancer claims in the first ninety days. At review, four years later, this means:
- AAny cancer claim will be reduced by the proportion of the moratorium period to the policy year
- BCancer is permanently excluded from the policy and cannot be claimed at any point
- CThe moratorium restarts each policy anniversary, so the exclusion applies for ninety days a year
- The moratorium expired long ago, and a cancer diagnosis now would be assessed on the definitions
Correct answer: D) The moratorium expired long ago, and a cancer diagnosis now would be assessed on the definitions
The cancer moratorium is a one-time provision at the start of the contract designed to exclude conditions already developing, and it has no further effect once the period has passed.
Why the other options are wrong
- ANo proportional reduction exists; the benefit is paid in full or not at all.
- BThe exclusion is temporary; cancer is a core covered condition afterwards.
- CThe provision applies once at issue, not annually.
Exam tip
The cancer moratorium applies once, at the start.
Common mistake
Telling a client their policy never covers cancer because of the moratorium.
What this tests
CISRO competency component 1.2 — 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.