LLQP Accident & Sickness · Component 1.1 · 35% of the exam
A group client asks what 'nature of business' has to do with its A&S quote. The agent should explain that:
- AIt is used only to classify the group for the insurer's marketing reports
- BIt determines which employees are permitted to name beneficiaries
- CIt affects life insurance pricing but not health or disability benefits, which depend only on the members' ages
- Industry drives morbidity, so some industries are rated higher or restricted for disability
Correct answer: D) Industry drives morbidity, so some industries are rated higher or restricted for disability
The curriculum lists nature of business under the group client's situation and comparative businesses under group underwriting. A roofing firm and an accounting firm are priced differently for LTD.
Why the other options are wrong
- AIndustry is a core pricing input, not a marketing label.
- BBeneficiaries are chosen by each member; industry is irrelevant.
- CIndustry affects morbidity as much as mortality, so A&S pricing depends on it.
Exam tip
Industry drives group A&S pricing through expected morbidity.
Common mistake
Quoting a hazardous-industry group at office rates.
What this tests
CISRO competency component 1.1 — Assess the client's needs and situation — which is weighted at 35% of the Accident & Sickness module. Written against the published curriculum.
More from component 1
- The single most important fact for sizing a client's disability income need is:
- A client's beneficiaries for assets are listed in the fact-finding. Why does this matter for A&S planning?
- A client asks why the agent wants to know how assets are owned (jointly or individually). In the A&S context the answer is:
- A client mentions a back injury five years ago that fully resolved. The agent should:
- Which element of a client's situation most affects the definition of disability that should be recommended?
- Which of the following health facts is most relevant to a client's disability insurance situation?
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.