LLQP Accident & Sickness · Component 3.2 · 25% of the exam
A client with a large emergency fund and high income asks whether a shorter waiting period is 'worth it'. The recommendation is usually:
- A longer waiting period, since the premium saving outweighs benefits the client can self-fund
- BTwo policies, one with a short wait for the first months and a second with a long wait for the years that follow
- CThe shortest waiting period available, since a high earner has the most income to protect from the first day
- DNo DI at all, since a large emergency fund and a high income mean the client is effectively self-insured
Correct answer: A) A longer waiting period, since the premium saving outweighs benefits the client can self-fund
Insurance is for losses the client cannot absorb. Self-funding the waiting period is cost-effective when resources exist.
Why the other options are wrong
- BTwo policies add cost and complexity without addressing the waiting period question.
- CThe shortest wait is the most expensive per unit of protection.
- DThe long-term risk remains.
Exam tip
Ample savings → longer waiting period.
Common mistake
Recommending 30-day waits regardless of resources.
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.