LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A group benefits booklet lists AD&D coverage alongside life and LTD. The AD&D benefit pays:
- A lump sum for accidental death and a scheduled percentage for specified losses
- BThe hospital bills arising from an accident, up to a stated maximum per occurrence
- CA monthly income while the insured recovers from an accidental injury that prevents work
- DA lump sum for death or dismemberment from any cause, including illness and disease
Correct answer: A) A lump sum for accidental death and a scheduled percentage for specified losses
AD&D is scheduled-loss, accident-only coverage. It is inexpensive and common in group plans but is not disability or life insurance in the ordinary sense.
Why the other options are wrong
- BIt pays scheduled amounts, not bills.
- CPayments are lump sums, not income.
- DIllness is excluded from AD&D; only accidental causes are covered.
Exam tip
AD&D: principal sum for accidental death, schedule for dismemberment, accident only.
Common mistake
Counting AD&D as life or disability coverage in a needs analysis.
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 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:
- A 'retirement protection' rider on a DI policy:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.