LLQP Accident & Sickness · Component 1.3 · 35% of the exam
Summarizing the needs analysis for a client, the agent should present:
- AOnly the largest gap, so the client is not discouraged by the full extent of the shortfall
- The identified risks, the resources available against each, the resulting gaps and their priority
- COnly the recommended product and premium, since the reasoning behind it is the agent's work
- DThe insurer's brochure for each product, so the client can compare the features personally
Correct answer: B) The identified risks, the resources available against each, the resulting gaps and their priority
A client can only evaluate a recommendation if the risks, the offsets and the resulting gaps are laid out, which also documents how the agent reached the amount recommended.
Why the other options are wrong
- AConcealing part of the analysis prevents an informed decision.
- CA product without its reasoning cannot be assessed by the client.
- DBrochures describe products; they do not set out the client's needs.
Exam tip
Risks, resources, gaps, priority: in that order.
Common mistake
Leading with the product instead of the analysis.
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.