LLQP Accident & Sickness · Component 3.3 · 25% of the exam
A client's A&S application is declined. The agent's responsibility is to:
- AReapply with the medical history omitted, since the insurer has already seen the full picture
- BTell the client nothing further can be done, since a decline closes the file permanently
- Explain the outcome, discuss alternatives such as simplified or accident-only products, and document it
- DSubmit the same application to three other insurers without mentioning the decline to any of them
Correct answer: C) Explain the outcome, discuss alternatives such as simplified or accident-only products, and document it
A decline narrows the options but rarely eliminates them, and the client is entitled to know what the alternatives are and what each would and would not cover.
Why the other options are wrong
- AOmitting history from a new application is a material misrepresentation.
- BAlternatives commonly exist, including simplified and accident-only products.
- DA prior decline must be disclosed where another insurer asks about it.
Exam tip
A decline changes the shelf, not the client's need.
Common mistake
Shopping a declined case without disclosing the earlier decision.
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.