LLQP Accident & Sickness · Component 1.3 · 35% of the exam
In articulating a group client's needs, the agent should also address the employees' perspective, which includes:
- ANothing, since employees have no stake in a plan the employer chooses and pays for
- BThe owner's own coverage, since the plan exists mainly to insure the owner at group rates
- CThe employer's tax deduction, which is the main reason employees agree to join
- Coverage without underwriting up to limits, lower cost, and tax advantages
Correct answer: D) Coverage without underwriting up to limits, lower cost, and tax advantages
The curriculum lists advantages of group insurance for employees. Group coverage may be the only coverage available to employees with health issues, and it is usually cheaper than individual coverage.
Why the other options are wrong
- AEmployees are the insured members with a direct stake.
- BGroup plans are for the workforce.
- CThat is the employer's advantage, not the employees'.
Exam tip
Employee advantages: no evidence (to limits), lower cost, tax-favoured.
Common mistake
Presenting the group plan only from the employer's side.
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.