LLQP Accident & Sickness · Component 3.2 · 25% of the exam
A client's group plan already provides sixty per cent of salary to a monthly maximum. The individual recommendation should:
- AReplace the group plan, since individual coverage is superior in definition and portability
- BDuplicate the group amount, so the client has two entirely independent sources of disability income
- Top up the amount above the group cap, with a waiting period that begins where the group plan starts
- DBe deferred until the client leaves the employer, since the group plan cannot be supplemented
Correct answer: C) Top up the amount above the group cap, with a waiting period that begins where the group plan starts
Individual coverage is most valuable where the group plan stops, so it should target the capped excess and dovetail with the group plan's elimination period rather than duplicate it.
Why the other options are wrong
- AGroup coverage cannot be replaced by the client; the member does not control it.
- BDuplication will be reduced by the all-sources maximum.
- DSupplementing a group plan is standard practice.
Exam tip
Top up where the cap bites, and start where the group plan starts.
Common mistake
Selling coverage the all-sources maximum will simply offset.
What this tests
CISRO competency component 3.2 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Accident & Sickness module. Written against the published curriculum.
More from component 3
- An underwriter assigns a disability applicant to occupational class 2 rather than class 4. The practical effect is that:
- A disability applicant discloses a back condition that resolved four years ago with no recurrence. The likely underwriting outcome is:
- Financial underwriting for an individual disability application exists to:
- A critical illness applicant's mother and sister both had breast cancer before fifty. The underwriter is likely to:
- An applicant for long-term care coverage is seventy-two. The insurer is most likely to require:
- Group long-term disability coverage within the non-evidence maximum is issued without individual medical questions because:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.