LLQP Accident & Sickness · Component 1.1 · 35% of the exam
A client's debts include a mortgage, a car loan and credit cards. In the disability needs analysis, the agent records for each:
- Type, amount, rate and repayment schedule, because the payments continue during disability
- BThe outstanding balance only, because disability insurance pays off debt at claim
- CThe lender's name and account number, for the insurer's creditor verification
- DThe original loan amount, because the disability benefit is sized to match it and clear the debt at claim
Correct answer: A) Type, amount, rate and repayment schedule, because the payments continue during disability
The curriculum lists details of all debt. Unlike life insurance, DI does not pay off debts; it must fund the ongoing payments, so the schedule and amounts matter.
Why the other options are wrong
- BDisability insurance does not pay off debt; it funds the ongoing payments.
- CLender details are the least useful; the monthly burden is what matters.
- DThe original amount says nothing about the payments that continue.
Exam tip
DI funds debt payments, not payoff. Record the monthly schedule.
Common mistake
Treating debt in a DI analysis the same way as in a life analysis.
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.