LLQP Accident & Sickness · Component 3.2 · 25% of the exam
A client wants the cheapest DI available. The agent should:
- ASell the cheapest policy without comment, since the client has made an informed request and is entitled to decide
- Show how price relates to renewability, definition and riders, then document any decision to take less
- CRefuse to sell anything, since a policy chosen on price alone cannot be suitable and the file would not withstand review
- DDescribe the cheaper product as inferior in ways it is not, so that the client is guided toward the better policy
Correct answer: B) Show how price relates to renewability, definition and riders, then document any decision to take less
Clients may choose less than recommended; the agent's duty is to recommend suitably and document the client's informed choice.
Why the other options are wrong
- ASelling without explaining the trade-offs fails the client.
- CThe client has a right to choose after being advised.
- DMisrepresentation is misconduct.
Exam tip
Recommend what fits; document any client decision to take less.
Common mistake
Failing to document when a client declines recommended coverage.
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.