LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A DI policy that covers 'own occupation' for the full benefit period compared with one that covers own occupation for two years then 'any occupation':
- Costs more and is worth more to specialists, since it keeps paying after two years
- BIs identical in practice, since insurers rarely apply the any-occupation test to professional occupations
- CPays a lower monthly benefit, since the insurer offsets the cost of the stronger definition against the amount
- DIs cheaper, since fewer claims are ever made under an own-occupation definition of disability
Correct answer: A) Costs more and is worth more to specialists, since it keeps paying after two years
Definition duration is priced. Full-period own-occ is a premium feature; the two-year switch is a cost compromise and the group LTD norm.
Why the other options are wrong
- BThe definitions differ after year two, and insurers do apply the test.
- CThe amount is the same; the trigger differs.
- DThe stronger definition costs more.
Exam tip
Own-occ to 65 costs more than own-occ for 2 years then any-occ; specialists value it.
Common mistake
Comparing premiums without comparing definition duration.
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.