LLQP Accident & Sickness · Component 1.1 · 35% of the exam
Why does the curriculum list 'two years of claims experience' for a group client?
- ABecause the new insurer must reimburse any claims the old insurer left unpaid
- BBecause past claims set the deductible each employee will pay under the plan
- CBecause regulators require two years of history before a plan can be registered
- Because past claims predict future claims and so the premium for larger groups
Correct answer: D) Because past claims predict future claims and so the premium for larger groups
Experience rating uses the group's own history. New quotes for established groups need claims data; small groups may be pooled instead.
Why the other options are wrong
- AClaims incurred under the previous insurer remain that insurer's to pay.
- BDeductibles are plan design choices, not something derived from claims history.
- CNo regulator requires claims history; the insurer needs it to price.
Exam tip
Larger groups are experience-rated; claims history drives the quote.
Common mistake
Promising a group a lower rate without seeing its claims experience.
What this tests
CISRO competency component 1.1 — 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.