LLQP Accident & Sickness · Component 3.3 · 25% of the exam
A client tells the agent at delivery that she has seen a specialist since applying. The agent must:
- ARecord the consultation in the file and raise it at the next annual review with the client
- BComplete the delivery, since the underwriting decision has already been made by the insurer
- Withhold delivery and inform the insurer, since the offer depends on no change in insurability
- DAsk the client to obtain the specialist's report before deciding whether the insurer needs to know
Correct answer: C) Withhold delivery and inform the insurer, since the offer depends on no change in insurability
The insurer's offer is conditional on the applicant's health being as disclosed, so a new consultation between application and delivery must go back to the underwriter.
Why the other options are wrong
- ADeferring the disclosure to a later review leaves the contract vulnerable to rescission.
- BDelivering in the face of a known change defeats the condition attached to the offer.
- DThe decision about what is material belongs to the insurer, not the agent or the client.
Exam tip
A change between application and delivery goes straight back to the insurer.
Common mistake
Completing a delivery after hearing about a new medical consultation.
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.