LLQP Accident & Sickness · Component 3.3 · 25% of the exam
A client asks whether her A&S policy can be cancelled after delivery if she changes her mind. The agent should explain:
- AShe may cancel at any time during the first year and receive all of her premiums back with interest
- She may cancel within a short period after delivery and receive a refund, under the contract's terms
- CThe contract is final once delivered, and the only exit is to stop paying and let it lapse
- DOnly the insurer may cancel an individual A&S policy once it has been issued and delivered
Correct answer: B) She may cancel within a short period after delivery and receive a refund, under the contract's terms
A rescission right applies for a short window after delivery, and the client can also terminate later by stopping payment, though without a refund at that stage.
Why the other options are wrong
- AThe refund window is days, not a year, and no interest is added.
- CA rescission right exists and must be explained.
- DThe policyholder controls termination of an individual contract.
Exam tip
Explain the free-look window at delivery.
Common mistake
Failing to mention the right to examine and return the policy.
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.