LLQP Accident & Sickness · Component 2.1 · 30% of the exam
Occupational classes in DI underwriting reflect:
- AThe province where the insured works, since each provincial regulator publishes its own class table
- The hazards and stability of the occupation and the likelihood of a return to work
- CThe insured's income only, since higher earners are automatically placed in the higher classes
- DThe insured's age at issue, since younger workers are placed in the more favourable classes
Correct answer: B) The hazards and stability of the occupation and the likelihood of a return to work
Classes range from professional/executive (best) through skilled and clerical to manual and hazardous (worst). Class determines product availability and pricing.
Why the other options are wrong
- AProvince does not set the class.
- CIncome determines the amount, not the class.
- DAge is a separate pricing factor.
Exam tip
Occupational class drives premium, benefit period options and definition availability.
Common mistake
Quoting professional-class rates for a skilled-trade client.
What this tests
CISRO competency component 2.1 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Accident & Sickness module. Written against the published curriculum.
More from component 2
- A group benefits booklet lists AD&D coverage alongside life and LTD. The AD&D benefit pays:
- A hospital indemnity (hospital cash) policy pays:
- Employment Insurance sickness benefits are available to:
- Which government program coordinates with an individual DI policy through a possible offset AND also affects the definition of insurable income?
- A group plan's 'eligibility waiting period' (probationary period) is:
- A CI policy that is 'convertible' allows the insured to:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.