LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A critical illness contract's coverage of early-stage cancers is usually provided as:
- AA full benefit payment, since any malignancy satisfies the contract's cancer definition
- BAn exclusion, since early-stage conditions never qualify for any payment at all
- A partial benefit that pays a percentage and leaves the balance of the coverage in force
- DA benefit paid only after the insured has undergone the full course of the prescribed treatment
Correct answer: C) A partial benefit that pays a percentage and leaves the balance of the coverage in force
Partial-benefit provisions recognize conditions that are real but less severe, paying a proportion of the sum insured while the remaining coverage stays available for a later qualifying claim.
Why the other options are wrong
- AEarly-stage conditions typically fall short of the full cancer definition.
- BMost modern contracts pay something rather than nothing for these conditions.
- DPayment follows diagnosis and the survival period, not the completion of treatment.
Exam tip
Partial benefits pay less and leave the rest of the coverage intact.
Common mistake
Telling a client an early-stage diagnosis pays the full amount.
What this tests
CISRO competency component 2.1 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Accident & Sickness module. Written against the published curriculum.
More from component 2
- A group benefits booklet lists AD&D coverage alongside life and LTD. The AD&D benefit pays:
- A hospital indemnity (hospital cash) policy pays:
- Employment Insurance sickness benefits are available to:
- Which government program coordinates with an individual DI policy through a possible offset AND also affects the definition of insurable income?
- A group plan's 'eligibility waiting period' (probationary period) is:
- A CI policy that is 'convertible' allows the insured to:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.