LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A guaranteed standard issue group disability arrangement differs from ordinary group coverage because it:
- Issues individual disability policies to a defined group without individual medical evidence
- BGuarantees the employer a fixed premium for the whole term of the group contract
- CGuarantees the benefit will never be reduced by the insurer for the life of the member
- DRequires every member of the group to complete a full paramedical examination before coverage begins
Correct answer: A) Issues individual disability policies to a defined group without individual medical evidence
These arrangements place individually owned, portable contracts with a qualifying group on a simplified basis, which is attractive to professionals whose group benefit is capped.
Why the other options are wrong
- BPremium guarantees are a separate matter from the issue basis.
- CThe issue basis is guaranteed, not the benefit for life.
- DAvoiding individual medical evidence is the whole point of the arrangement.
Exam tip
Guaranteed standard issue means individual policies, simplified underwriting.
Common mistake
Confusing guaranteed standard issue with ordinary group long-term disability.
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.