LLQP Accident & Sickness · Component 1.3 · 35% of the exam
An employer with a high-turnover workforce asks about group benefit needs. The agent should note that:
- ATurnover makes group benefits impossible because participation minimums cannot be sustained
- High turnover affects design — eligibility waiting periods, benefit types, cost control
- COnly LTD is needed, since short-tenure employees rarely have health or dental claims
- DTurnover is irrelevant, because the plan is priced on the census at inception only
Correct answer: B) High turnover affects design — eligibility waiting periods, benefit types, cost control
Eligibility waiting periods limit cost from short-tenure employees; a benefits package can improve retention. Group needs analysis considers workforce dynamics.
Why the other options are wrong
- APlans can be designed for high-turnover workforces.
- CHealth and dental are typically the priority for such groups.
- DTurnover shapes design and cost throughout the plan's life.
Exam tip
High turnover: eligibility waiting period, cost control, retention value.
Common mistake
Proposing a rich plan with immediate eligibility to a high-turnover employer.
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.