LLQP Accident & Sickness · Component 1.2 · 35% of the exam
In assessing a client's existing coverage, 'advantages and disadvantages of existing coverage' means:
- Weighing strengths like a guaranteed premium against weaknesses like a short benefit period
- BListing only the disadvantages so the client sees why new coverage is needed and agrees to the recommendation
- CRecommending replacement whenever a newer product offers more features
- DListing only the advantages so the client keeps every policy in force
Correct answer: A) Weighing strengths like a guaranteed premium against weaknesses like a short benefit period
The curriculum lists 'advantages and disadvantages of existing coverage'. A balanced assessment drives an appropriate recommendation rather than a reflexive replacement.
Why the other options are wrong
- BA list of disadvantages alone is as misleading as a list of advantages alone.
- CReplacement is a possible conclusion, not the purpose of the review.
- DA one-sided list misleads the client either way.
Exam tip
Existing coverage review = balanced pros and cons, then keep/supplement/replace.
Common mistake
Reviewing existing coverage only to justify a new sale.
What this tests
CISRO competency component 1.2 — 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.