LLQP Accident & Sickness · Component 3.2 · 25% of the exam
A client with a modest budget must choose between DI and CI. The agent's recommendation should generally:
- ABuy neither until the budget allows both, since partial protection creates a false sense of security
- BSplit the budget equally between the two products so that both risks receive some protection
- CFavour CI because it is easier to understand and the client asked about a specific illness
- Favour DI as the foundation, since income loss from any cause is the more probable risk
Correct answer: D) Favour DI as the foundation, since income loss from any cause is the more probable risk
Prioritization by probability and severity puts income replacement first. CI complements it.
Why the other options are wrong
- ASome protection is needed.
- BEqual split may under-fund the priority.
- CEase of explanation is not a suitability criterion.
Exam tip
Limited budget: DI first, CI second.
Common mistake
Leading with CI because the client asked about cancer.
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.