LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client's existing DI policy has a 'recurrent disability' provision. This means:
- APremiums paid during the first disability are refunded when it recurs
- BBenefits are paid twice if the same disability recurs within a year, since each episode is a separate claim
- CThe policy renews automatically after a claim without new evidence
- A recurrence within a set period continues the original claim without a new wait
Correct answer: D) A recurrence within a set period continues the original claim without a new wait
Recurrent disability provisions protect clients who attempt a return to work. Without one, a relapse means a fresh waiting period. It is a favourable feature to note.
Why the other options are wrong
- ANo refund is involved; the provision concerns the waiting period.
- BBenefits continue from the original claim; they do not double.
- CRenewal is a separate provision unrelated to recurrence.
Exam tip
Recurrent disability = relapse within the stated period continues the old claim, no new wait.
Common mistake
Overlooking provisions that reward return-to-work attempts.
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.