LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A self-employed client has been paying into an association plan for years. At review the agent finds the plan is not guaranteed renewable. This means:
- AThe premium is fixed for life, since association pricing is negotiated for the whole membership
- BThe plan cannot be cancelled while the client remains a member of the association in good standing
- CThe client's premiums are refunded if the association or insurer decides to end the plan
- The sponsor or insurer can change or end the coverage, so it cannot be relied on as a permanent layer
Correct answer: D) The sponsor or insurer can change or end the coverage, so it cannot be relied on as a permanent layer
Association coverage is a group contract between the sponsor and the insurer, so the member's protection lasts only as long as both choose to continue it on the current terms.
Why the other options are wrong
- AAssociation premiums typically rise in age bands and can be repriced.
- BMembership does not bind the insurer to continue a group contract.
- CNo refund of past premiums arises when a group plan ends.
Exam tip
Association coverage is a group contract, not a personal guarantee.
Common mistake
Treating an association plan as equivalent to non-cancellable individual coverage.
What this tests
CISRO competency component 1.2 — Assess the client's needs and situation — which is weighted at 35% of the Accident & Sickness module. Written against the published curriculum.
More from component 1
- The single most important fact for sizing a client's disability income need is:
- A client's beneficiaries for assets are listed in the fact-finding. Why does this matter for A&S planning?
- A client asks why the agent wants to know how assets are owned (jointly or individually). In the A&S context the answer is:
- A client mentions a back injury five years ago that fully resolved. The agent should:
- Which element of a client's situation most affects the definition of disability that should be recommended?
- Which of the following health facts is most relevant to a client's disability insurance situation?
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.