LLQP Accident & Sickness · Component 2.1 · 30% of the exam
Standard exclusions in individual disability policies commonly include disability resulting from:
- AAccidents occurring while the insured is travelling outside the province of residence
- BAny illness that was diagnosed and treated before the policy's issue date
- COccupational injuries that are already covered by workers' compensation
- War, self-inflicted injury, criminal acts and normal pregnancy
Correct answer: D) War, self-inflicted injury, criminal acts and normal pregnancy
These exclusions are common across insurers. Mental and nervous limitations vary; agents must read the specific contract.
Why the other options are wrong
- AAccidents are core coverage, including while travelling.
- BDisclosed prior illness is underwritten, not automatically excluded.
- COccupational disability is covered, typically with a workers' compensation offset.
Exam tip
Common exclusions: war, self-inflicted, crime, normal pregnancy; check mental/nervous limits.
Common mistake
Failing to explain a mental/nervous limitation to a client in a high-stress occupation.
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.