LLQP Accident & Sickness · Component 3.2 · 25% of the exam
A recommendation should address inflation for a 28-year-old client with a to-65 DI benefit by:
- ALeaving inflation aside, since a 28-year-old is unlikely to remain on claim long enough for it to matter
- Including COLA for in-claim indexing, plus automatic increases or FPO for pre-claim growth
- CShortening the benefit period so that the benefit is paid over years in which it still has its full value
- DBuying accident-only coverage, which is cheaper and leaves room in the budget for benefit increases later
Correct answer: B) Including COLA for in-claim indexing, plus automatic increases or FPO for pre-claim growth
A 37-year horizon makes inflation protection essential in both phases: before and during a claim.
Why the other options are wrong
- AInflation would gut a long claim.
- CShortening the benefit period worsens the exposure.
- DAccident-only is irrelevant to inflation.
Exam tip
Young client: COLA + FPO/automatic increases.
Common mistake
Omitting COLA for young clients.
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
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- 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.