LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A group life and disability plan is renewed annually. For the member this means:
- AThe member's individual rate is guaranteed for the whole period of employment
- Rates and terms can change at each renewal, since the sponsor holds the contract
- CCoverage lapses at each anniversary until the member confirms participation in writing
- DThe member must reapply and provide evidence of insurability every year
Correct answer: B) Rates and terms can change at each renewal, since the sponsor holds the contract
A group contract is renewed between the insurer and the sponsor, and the member has no contractual assurance about what the coverage will look like after the next renewal.
Why the other options are wrong
- AGroup rates are set for the group and repriced with its experience.
- CCoverage continues without an annual confirmation from each member.
- DMembers do not reapply annually; the sponsor renews the contract.
Exam tip
The sponsor renews; the member simply finds out the result.
Common mistake
Treating group benefits as if the member held the contract.
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.