LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A client who is a commissioned salesperson asks why his DI need might be larger than a salaried employee's. The agent should explain:
- Commission stops at once with no sick-pay cushion, and he may lack group coverage
- BSalespeople are rated as a hazardous occupation and pay more for the same monthly benefit
- CIt is not larger; every client's need is the same percentage of pre-disability income
- DCommission is unearned income, so the entire amount must be insured under a separate rider
Correct answer: A) Commission stops at once with no sick-pay cushion, and he may lack group coverage
Salaried employees often have sick leave, STD and LTD. Commissioned and self-employed workers often have none, making the individual DI need broader and the waiting period harder to bridge.
Why the other options are wrong
- BSales is not a hazardous class; the difference is the absence of employer coverage.
- CThe absence of employer coverage enlarges the gap.
- DCommission is earned income.
Exam tip
Self-employed and commission clients: no group cushion → larger individual need.
Common mistake
Assuming every client has some group disability protection.
What this tests
CISRO competency component 1.3 — 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.