LLQP Accident & Sickness · Component 1.1 · 35% of the exam
A client's household budget depends on both spouses working, and both are self-employed. In the A&S analysis:
- Both should be assessed, since neither has group coverage and either disability creates a shortfall
- BNeither needs coverage, since a self-employed couple can adjust their hours if one becomes disabled
- COnly the higher earner should be insured, since one policy protects the household's standard of living
- DThe couple should be insured under one joint disability contract covering whichever of them claims first
Correct answer: A) Both should be assessed, since neither has group coverage and either disability creates a shortfall
Two self-employed incomes means two uninsured exposures, and the household's fixed commitments assume both continue, so each spouse's loss has to be quantified separately.
Why the other options are wrong
- BA disabled spouse cannot simply work more; that is the risk being insured.
- CThe lower earner's income is also committed to the household's fixed costs.
- DDisability insurance is issued on individual lives, not as a joint contract.
Exam tip
Two incomes, two exposures, two analyses.
Common mistake
Insuring only the higher earner in a two-income household.
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.