LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client's individual DI policy has a 'presumptive disability' clause. In the review the agent should explain that it:
- AReduces the benefit to a fixed percentage for the listed losses, since they are considered partial disabilities
- BPresumes the client is not disabled until a physician certifies otherwise
- Deems the client totally disabled on loss of sight, hearing, speech or two limbs
- DApplies only to disabilities caused by illness rather than injury
Correct answer: C) Deems the client totally disabled on loss of sight, hearing, speech or two limbs
Presumptive disability is a favourable provision that pays for catastrophic losses even if the client could still work. It is a positive feature to note in existing coverage.
Why the other options are wrong
- AIt pays the full benefit for the listed losses.
- BIt presumes disability, not the reverse.
- DIt applies to the specified losses from any cause.
Exam tip
Presumptive disability: specified losses = total disability, often with the waiting period waived.
Common mistake
Overlooking valuable provisions in an existing policy during a replacement discussion.
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.