LLQP Accident & Sickness · Component 1.1 · 35% of the exam
For a group A&S client, why does the agent ask about the employer's turnover rate?
- ABecause the regulator requires turnover to be filed with the group policy at issue
- BBecause turnover determines the beneficiary designations the members may make
- Because high turnover affects participation, experience and the stability of the risk pool
- DBecause plans with high turnover must be underwritten individually on every member
Correct answer: C) Because high turnover affects participation, experience and the stability of the risk pool
A workforce that changes constantly is harder to price and harder to administer, and it affects whether participation requirements can be met and sustained.
Why the other options are wrong
- ATurnover is an underwriting input, not a regulatory filing.
- BMembers designate their own beneficiaries regardless of the employer's turnover.
- DGroup members are not individually underwritten within the non-evidence maximum.
Exam tip
Turnover is a pricing and participation question, not a compliance one.
Common mistake
Quoting a high-turnover group on the same basis as a stable one.
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.