LLQP Accident & Sickness · Component 3.3 · 25% of the exam
A client asks whether a disability policy can be backdated so that premiums start next month. The agent should explain that:
- ABackdating is at the agent's discretion and is treated as a routine administrative convenience for clients
- Policies are dated by the insurer under its own rules, and backdating requires the back premiums to be paid
- CBackdating delays the effective date, which is why it postpones the first premium
- DBackdating is prohibited outright, so the policy must always take effect on the date of issue
Correct answer: B) Policies are dated by the insurer under its own rules, and backdating requires the back premiums to be paid
Where an insurer permits backdating, the date moves earlier rather than later, and the client pays for the intervening period, so it never postpones the first payment.
Why the other options are wrong
- ADating is the insurer's decision, not the agent's.
- CBackdating moves the date earlier, which is the opposite of a postponement.
- DBackdating within permitted limits is a recognized practice.
Exam tip
Backdating moves the policy date earlier and costs back premiums.
Common mistake
Confusing backdating with deferring the start of coverage.
What this tests
CISRO competency component 3.3 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Accident & Sickness module. Written against the published curriculum.
More from component 3
- An underwriter assigns a disability applicant to occupational class 2 rather than class 4. The practical effect is that:
- A disability applicant discloses a back condition that resolved four years ago with no recurrence. The likely underwriting outcome is:
- Financial underwriting for an individual disability application exists to:
- A critical illness applicant's mother and sister both had breast cancer before fifty. The underwriter is likely to:
- An applicant for long-term care coverage is seventy-two. The insurer is most likely to require:
- Group long-term disability coverage within the non-evidence maximum is issued without individual medical questions because:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.