LLQP Accident & Sickness · Component 1.1 · 35% of the exam
A unionized factory worker tells the agent his benefits are 'in the collective agreement'. The agent should:
- AContact the union directly for the member's claims history before completing the needs analysis
- Obtain the benefits booklet and confirm the disability definition, amounts, offsets and duration
- CAccept that union plans are always adequate and record that no individual coverage is required
- DAdvise him to leave the union plan so that an individual policy can be issued without offsets
Correct answer: B) Obtain the benefits booklet and confirm the disability definition, amounts, offsets and duration
A collective agreement describes the benefit in general terms, but the plan document sets the definition, the cap and the offsets that determine what he would actually receive.
Why the other options are wrong
- AClaims history is confidential and is not needed to assess the member's own coverage.
- CUnion plans vary widely and frequently cap the benefit well below the member's earnings.
- DLeaving a group plan to suit an individual sale would be plainly unsuitable advice.
Exam tip
Always read the booklet; the agreement is not the plan.
Common mistake
Treating 'it is in our contract' as a complete description of the coverage.
What this tests
CISRO competency component 1.1 — 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.