LLQP Accident & Sickness · Component 1.3 · 35% of the exam
Which of the following is an example of a group need the agent should articulate for an employer client?
- AInsuring the owner's personal mortgage so the business is never sold to cover it
- Disability, health and dental for employees at a sustainable cost, with tax-aware cost-sharing
- CBuying critical illness coverage on the owner, with the corporation paying the premiums
- DFunding the owner's retirement through an individual pension plan the business sponsors
Correct answer: B) Disability, health and dental for employees at a sustainable cost, with tax-aware cost-sharing
Group needs concern the workforce: what benefits to offer, how to fund them, and how design (who pays LTD premiums) affects tax outcomes. Owner's personal needs are separate.
Why the other options are wrong
- AThe owner's mortgage is a personal need, not a group need.
- CPersonal CI on the owner is an individual need.
- DRetirement is an individual or pension matter, not a group A&S need.
Exam tip
Group need = benefits for the workforce; plan design manages cost and taxability.
Common mistake
Mixing the owner's personal needs with the group plan's design.
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.