LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A 'flexible benefits' (flex) group plan:
- AIs individually underwritten for each employee at the time they choose their benefit options each year
- BHas no options, since every member of the group must take the same package of benefits
- CCovers only executives, since the flexibility is offered as a perquisite to the most senior staff
- Gives employees credits to allocate among benefit options, often with a health spending account
Correct answer: D) Gives employees credits to allocate among benefit options, often with a health spending account
Flex plans respond to diverse workforces. They require careful design to limit anti-selection (for example, restricting changes to life events).
Why the other options are wrong
- AGroup underwriting applies; anti-selection is controlled by rules on changing elections.
- BChoice is the defining feature of a flex plan.
- CFlex plans are for the whole eligible group.
Exam tip
Flex plan: credits, modules, HSA; watch anti-selection rules.
Common mistake
Assuming employees can change flex elections at will.
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.