LLQP Accident & Sickness · Component 1.1 · 35% of the exam
A client's employer is a small business with five employees. In assessing a group A&S plan for it, the agent should recognize that:
- Small groups are usually pooled and face stricter participation and design rules
- BSmall groups are experience-rated on their own claims from the first renewal
- CSmall groups are quoted without a census because the members are so few that the insurer prices on the industry alone
- DSmall groups can only be covered through an industry association plan
Correct answer: A) Small groups are usually pooled and face stricter participation and design rules
Group A&S underwriting depends on group size. Small groups are pooled with others for pricing and face rules that protect the pool from anti-selection.
Why the other options are wrong
- BExperience rating needs credible claims volume, which small groups lack.
- CA census is always needed to quote, however small the group.
- DInsurers cover small groups directly under pooled arrangements.
Exam tip
Group size shapes underwriting: small = pooled and rule-bound; large = experience-rated.
Common mistake
Promising a five-person group a custom-designed, experience-rated plan.
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.