LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client's individual disability policy has an 'any occupation' definition of total disability. The agent should note that:
- It is the most restrictive: benefits stop if he could do any suitable occupation
- BIt is prohibited in individual policies and permitted only in group LTD plans
- CIt pays a higher benefit than own-occupation because it is easier to claim under
- DIt is the most generous definition because it covers disability from any cause
Correct answer: A) It is the most restrictive: benefits stop if he could do any suitable occupation
Definitions of disability: own occupation (most generous), regular occupation, any occupation (most restrictive). An any-occ policy on a specialist is a weak fit and a review finding.
Why the other options are wrong
- BAny-occupation definitions are legal in individual policies, though less common.
- CThe definition sets when benefits are paid, not how much.
- DOwn occupation is the most generous; any occupation is the narrowest.
Exam tip
Own-occ > regular-occ > any-occ in generosity. Check what the existing policy actually says.
Common mistake
Assuming a policy pays if the client cannot do their own job.
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.