LLQP Accident & Sickness · Component 2.2 · 30% of the exam
A residual disability rider:
- Pays a benefit proportionate to lost income on a return to work at reduced earnings
- BPays the full benefit for life once the insured has been totally disabled for two consecutive years
- CPays only after a period of total disability, and only for the six months that follow it
- DPays a flat 50% of the total benefit whenever the insured works fewer than full-time hours
Correct answer: A) Pays a benefit proportionate to lost income on a return to work at reduced earnings
Residual coverage is essential for self-employed and commission clients whose income may fall gradually. Some policies require prior total disability; better ones do not.
Why the other options are wrong
- BIt pays within the benefit period, in proportion to lost income.
- CBetter residual riders do not require prior total disability.
- DFlat percentages are the partial disability approach, not residual.
Exam tip
Residual = loss-of-earnings proportional benefit; check whether prior total disability is required.
Common mistake
Recommending a DI policy to a self-employed client without residual coverage.
What this tests
CISRO competency component 2.2 — 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.