LLQP Accident & Sickness · Component 3.2 · 25% of the exam
When presenting a DI recommendation, the agent should explain the definition of disability because:
- AIt sets the premium only, and the client's main interest is in what the policy costs each month
- BRegulators require the agent to read the definition to the client verbatim before the application is signed
- It determines when benefits are paid, and the client must understand own, regular and any occupation
- DIt is unimportant, since insurers apply the same standard definition regardless of the wording
Correct answer: C) It determines when benefits are paid, and the client must understand own, regular and any occupation
Definition is the heart of a DI contract and the most common source of claim disappointment. Explaining it is essential to informed consent.
Why the other options are wrong
- AIt affects claims, not just price.
- BThe requirement is understanding, not recitation.
- DIt is the most important provision.
Exam tip
Always explain the definition and any switch; document that you did.
Common mistake
Presenting only the premium and benefit amount.
What this tests
CISRO competency component 3.2 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Accident & Sickness module. Written against the published curriculum.
More from component 3
- An underwriter assigns a disability applicant to occupational class 2 rather than class 4. The practical effect is that:
- A disability applicant discloses a back condition that resolved four years ago with no recurrence. The likely underwriting outcome is:
- Financial underwriting for an individual disability application exists to:
- A critical illness applicant's mother and sister both had breast cancer before fifty. The underwriter is likely to:
- An applicant for long-term care coverage is seventy-two. The insurer is most likely to require:
- Group long-term disability coverage within the non-evidence maximum is issued without individual medical questions because:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.