LLQP Accident & Sickness · Component 4.1 · 10% of the exam
A client asks to reduce the waiting period on his in-force disability policy. The agent should explain that the change:
- Increases the insurer's exposure, so it requires a new application and evidence of insurability
- BTakes effect automatically at the next anniversary once the client's written request is received
- CIs prohibited by the contract, since design features are fixed at issue and can never be altered
- DReduces the premium, since a shorter waiting period means the insurer pays for a shorter time
Correct answer: A) Increases the insurer's exposure, so it requires a new application and evidence of insurability
Shortening the waiting period means the insurer starts paying sooner on every future claim, and any change that increases risk is underwritten as though it were new coverage.
Why the other options are wrong
- BNothing that increases the insurer's risk happens automatically.
- CAmendments are possible; they are simply underwritten.
- DA shorter wait raises the premium because benefits start earlier.
Exam tip
More risk to the insurer means new evidence.
Common mistake
Promising a client a design improvement without underwriting.
What this tests
CISRO competency component 4.1 — Provide customer service during the validity period of the coverage — which is weighted at 10% of the Accident & Sickness module. Written against the published curriculum.
More from component 4
- The agent's role in the claims process is to:
- A client with a non-cancellable DI policy stops paying premiums after a dispute with the insurer about a claim. The agent should warn that:
- When a client moves to another province, the agent should:
- A client's disability policy lapsed six weeks ago for non-payment. The agent should:
- A client on claim asks whether she must keep paying premiums. The accurate answer depends on:
- A client's non-cancellable disability policy reaches the expiry age stated in the contract. At that point:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.