LLQP Accident & Sickness · Component 1.3 · 35% of the exam
A self-employed dentist's practice has fixed monthly costs (rent, staff, equipment leases) that continue if she is disabled. The need is:
- Business overhead expense insurance for the practice, plus personal DI for her income
- BA group long-term disability plan covering the dentist together with all of the practice's staff
- CKey person life insurance on the dentist, owned by and payable to the practice
- DA single larger personal DI benefit sized to cover both her income and the overhead
Correct answer: A) Business overhead expense insurance for the practice, plus personal DI for her income
BOE reimburses covered overhead so the practice survives the owner's disability. Personal DI covers her own living expenses. The two needs are distinct and both listed under business needs.
Why the other options are wrong
- BGroup LTD replaces employees' income; it does not pay the practice's rent.
- CKey person life insurance pays at death, not during disability.
- DInsurers will not issue personal DI large enough to fund business overhead.
Exam tip
Owner-operated business: personal DI + BOE.
Common mistake
Sizing personal DI large enough to also pay the overhead — insurers will not issue it.
What this tests
CISRO competency component 1.3 — 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.