LLQP Accident & Sickness · Component 3.2 · 25% of the exam
A client wants the lowest possible disability premium and asks the agent to remove the residual benefit. The agent should:
- Explain what a partial recovery would mean without the benefit, then document the client's decision
- BReplace the residual benefit with an accidental death rider costing a similar premium each month
- CRemove it without comment, since the client has stated a clear preference on the design
- DRefuse to proceed, since a policy without a residual benefit is inherently unsuitable
Correct answer: A) Explain what a partial recovery would mean without the benefit, then document the client's decision
The client may choose a leaner design once the consequence has been explained, and the file must show that the trade-off was set out before the decision was made.
Why the other options are wrong
- BSubstituting an unrelated rider does not answer the client's cost concern.
- CRemoving a feature without explaining its effect fails the duty to advise.
- DMany suitable contracts are written without a residual benefit.
Exam tip
Explain the trade-off, then honour the client's documented choice.
Common mistake
Stripping features to win a price comparison without explaining the effect.
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.