LLQP Accident & Sickness · Component 3.2 · 25% of the exam
A group client wants to reduce the cost of its benefits plan. The design change most likely to preserve catastrophic protection is:
- AReducing the long-term disability replacement percentage to a level well below the group's average need
- BReducing the long-term disability benefit period from age sixty-five to two years
- Increasing the extended health deductible and co-insurance while keeping the disability design intact
- DRemoving the long-term disability benefit and retaining the short-term plan only
Correct answer: C) Increasing the extended health deductible and co-insurance while keeping the disability design intact
Trimming the frequent, low-severity benefits preserves the layer that protects members against financial catastrophe, which is the purpose of the plan.
Why the other options are wrong
- ACutting the percentage weakens the catastrophic layer rather than the routine one.
- BA two-year benefit period removes exactly the protection that matters most.
- DDropping long-term disability leaves members exposed to the severest risk.
Exam tip
Save money on frequency, not on severity.
Common mistake
Cutting the long-term disability benefit to fund richer dental coverage.
What this tests
CISRO competency component 3.2 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Accident & Sickness module. Written against the published curriculum.
More from component 3
- An underwriter assigns a disability applicant to occupational class 2 rather than class 4. The practical effect is that:
- A disability applicant discloses a back condition that resolved four years ago with no recurrence. The likely underwriting outcome is:
- Financial underwriting for an individual disability application exists to:
- A critical illness applicant's mother and sister both had breast cancer before fifty. The underwriter is likely to:
- An applicant for long-term care coverage is seventy-two. The insurer is most likely to require:
- Group long-term disability coverage within the non-evidence maximum is issued without individual medical questions because:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.