LLQP Accident & Sickness · Component 2.2 · 30% of the exam
When recommending riders on a disability policy, the professional standard is to:
- AAdd every rider the insurer offers so that no future need can be left uncovered
- Add only riders that answer a need identified in the analysis, explaining each one's cost
- CAdd the riders with the highest commission, since those reflect the insurer's best products
- DAdd no riders at all, since the base contract already covers the client's essential exposure
Correct answer: B) Add only riders that answer a need identified in the analysis, explaining each one's cost
Riders carry real premium, so each must be tied to something the analysis found and explained in terms of what it adds and what it costs.
Why the other options are wrong
- ARiders without a matching need raise the premium and are unsuitable.
- CCompensation can never be the basis of a recommendation.
- DSome riders, such as waiver and residual, answer clear and common needs.
Exam tip
One identified need, one rider, one documented reason.
Common mistake
Loading a policy with riders to fill out the application.
What this tests
CISRO competency component 2.2 — 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.