LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client's group LTD plan has a two-year 'own occupation' period followed by an 'any occupation' definition. This means:
- AThe definition stays 'own occupation' for the full claim as long as she cannot do her job, whatever else she could do
- Own occupation for two years, then she must be unable to do any suitable occupation
- CAfter two years she may take any other job and still keep the full LTD benefit
- DBenefits end at two years unless she has been declared permanently disabled
Correct answer: B) Own occupation for two years, then she must be unable to do any suitable occupation
Most group LTD plans use this two-tier definition. The change at two years is when many claims end. Individual coverage with a longer own-occupation definition fills the gap.
Why the other options are wrong
- AThe definition tightens at two years; that is the whole point of the two-tier clause.
- CWorking in another suitable occupation generally ends benefits under the any-occupation test.
- DBenefits continue past two years whenever the stricter definition is met.
Exam tip
Group LTD: own-occ for two years, then any-occ. Individual DI can extend own-occ.
Common mistake
Assuming group LTD pays to 65 under an own-occupation definition.
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.