LLQP Accident & Sickness · Component 3.2 · 25% of the exam
A client asks why the agent recommends a shorter waiting period than the one that would be cheapest. The best answer is:
- AInsurers prefer shorter waiting periods, so the application is more likely to be approved
- BA shorter waiting period extends the benefit period by the same number of days
- CShorter waiting periods qualify the client for a more favourable occupational class
- His savings and short-term coverage would run out before the longer waiting period ended
Correct answer: D) His savings and short-term coverage would run out before the longer waiting period ended
The waiting period should be set at the point where the client's own resources are exhausted, which for some clients is earlier than the cheapest option would allow.
Why the other options are wrong
- AThe waiting period has no bearing on whether an application is approved.
- BThe benefit period is a separate design choice.
- COccupational class comes from duties, not from policy design.
Exam tip
The waiting period is the deductible the client funds personally.
Common mistake
Choosing a waiting period by price rather than by the client's reserves.
What this tests
CISRO competency component 3.2 — 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.