LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client's disability coverage through a professional association is 'step-rated' by five-year age bands. The review should note that:
- APremiums are level for life once the member joins the association plan
- BThe plan has little value because association coverage cannot pay to age 65 and ends when membership lapses
- CThe plan is non-cancellable because the association contract guarantees renewal to every member in good standing
- Premiums rise with each age band, and the sponsor can change the plan
Correct answer: D) Premiums rise with each age band, and the sponsor can change the plan
Association plans are group contracts with age-banded rates and sponsor control. They are often good value early and expensive late. The review compares them with individual alternatives over the expected period of need.
Why the other options are wrong
- AStep-rated premiums rise with each age band.
- BThe benefit is real; the difference is in cost and stability over time.
- CAssociation plans are group contracts the sponsor or insurer can change.
Exam tip
Association DI: age-banded, sponsor-controlled. Compare over the long term with individual non-can.
Common mistake
Treating an association plan as equivalent to individual non-cancellable coverage.
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.