Free LLQP Accident and Sickness Insurance Practice Questions

Sample Practice Questions

Try these 10 sample questions from the LLQP Accident and Sickness Insurance practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1A client supports children in two households. To establish the family's continuing financial obligations if the client becomes disabled, which information is most relevant?

   1. A.Support payments and other commitments to family membersCorrect answer: A
   2. B.The age at which the client first bought insurance
   3. C.The beneficiary named on a former employer's plan
   4. D.The maturity date of a retired parent's annuity

   Explanation: The curriculum identifies "Financial responsibilities and commitments between family members" as information to assess. Support obligations determine the family's ongoing cash needs. Purchase history, another policy's beneficiary and a parent's annuity date do not measure those commitments.

   Reference: CISRO LLQP A&S curriculum — p. 3, Individual client’s personal situation

2. 2A client wants income replacement when illness prevents work. Which type of coverage directly serves that purpose?

   1. A.Disability insuranceCorrect answer: A
   2. B.Critical illness insurance
   3. C.Accidental death insurance
   4. D.Long-term care insurance

   Explanation: The source states "It provides protection if you’re unable to work and earn an income.". DI replaces income lost through inability to work; CI, accidental death and LTC use different insured events.

   Reference: FCAC Disability insurance — Understanding disability insurance

3. 3What is the purpose of underwriting when an individual applies for disability insurance?

   1. A.Assess eligibility and the terms on which coverage can be offeredCorrect answer: A
   2. B.Guarantee that every future claim will be approved
   3. C.Replace the applicant's financial needs assessment
   4. D.Set the same premium for every applicant

   Explanation: The source states "They’ll assess your eligibility for coverage". Underwriting assesses eligibility and terms,not a claim guarantee or uniform pricing.

   Reference: FCAC Getting insurance — Criteria insurance companies use to issue a policy

4. 4A health policy is approaching renewal. What should the agent use to establish the procedure needed to maintain coverage?

   1. A.The renewal procedure stated in that policyCorrect answer: A
   2. B.The procedure used by a different insurer
   3. C.The original advertisement alone
   4. D.The client's assumption that renewal is automatic

   Explanation: The source states "Your insurance policy will list the exact procedure". The contract's renewal procedure governs this policy; another insurer's practice or an advertisement does not.

   Reference: FCAC Getting insurance — Maintaining your insurance coverage

5. 5Two clients have the same job title, but one works at a desk and the other regularly climbs equipment. What should the agent establish to describe their occupations accurately?

   1. A.The occupational title used on their business cards
   2. B.Their actual daily job dutiesCorrect answer: B
   3. C.The courses required to qualify for their profession
   4. D.The number of years since they entered the profession

   Explanation: The curriculum includes "Daily job duties". Actual duties distinguish the exposures hidden by identical job titles. Titles, training and time in the profession do not establish whether the client performs the stated hazardous tasks.

   Reference: CISRO LLQP A&S curriculum — p. 3, Occupation

6. 6Which benefit structure is commonly associated with critical illness insurance?

   1. A.Reimbursement of every medical invoice
   2. B.A one-time lump sum following a covered diagnosisCorrect answer: B
   3. C.A monthly pension based on years of service
   4. D.An amount payable only on accidental death

   Explanation: The source states "one-time lump-sum payment". CI commonly provides a lump sum for a covered diagnosis, rather than invoice reimbursement, a pension or accident-only death proceeds.

   Reference: FCAC Health insurance — Critical illness insurance

7. 7Why may an insurer charge a higher premium to an applicant it considers more likely to claim?

   1. A.Higher premiums indicate a lower expected frequency of claims
   2. B.Premiums reflect the insurer's expected claim costCorrect answer: B
   3. C.Higher premiums guarantee that excluded conditions become covered
   4. D.Premiums reflect only past claims and ignore future expected risk

   Explanation: The source states "They may charge higher premiums if they think you are more likely to make a claim.". Expected risk affects pricing; it does not change salary or remove exclusions.

   Reference: FCAC Insurance basics — Premiums

8. 8A client stops paying premiums but assumes health coverage remains indefinitely. What risk should the agent explain?

   1. A.The insured benefit automatically increases
   2. B.The insurer may cancel coverage for non-paymentCorrect answer: B
   3. C.The policy automatically becomes paid-up life insurance
   4. D.All exclusions automatically disappear

   Explanation: The source states "your insurance company may cancel your policy". Failure to pay can end coverage; it does not itself increase benefits or convert the policy.

   Reference: FCAC Getting insurance — Pay your premiums on time

9. 9While collecting health information for an A&S needs assessment, which question specifically clarifies the client's treatment history?

   1. A.How much did your last disability policy cost?
   2. B.Which insurer handles your employer's group plan?
   3. C.Which medications have you used in the past and currently?Correct answer: C
   4. D.How long is the waiting period in your existing plan?

   Explanation: The curriculum identifies "List of past and present medications used" as information to assess. Past and current medications clarify medical treatment history. The other questions concern premiums, plan administration and contract terms.

   Reference: CISRO LLQP A&S curriculum — p. 3, Health and medical situation

10. 10Which condition most directly relates to long-term care insurance?

    1. A.A loss of earnings from reduced business sales
    2. B.A reduction in the employer's pension contribution
    3. C.Inability to care for oneself or manage daily activitiesCorrect answer: C
    4. D.A temporary decline in the family's investment income

    Explanation: FCAC describes LTC as coverage when "unable to care for yourself". This concerns care dependency, not reduced business revenue, lower pension contributions or investment losses.

    Reference: FCAC Health insurance — Long-term care insurance