LLQP Accident & Sickness · Component 3.1 · 25% of the exam
A critical illness applicant's mother and sister both had breast cancer before fifty. The underwriter is likely to:
- AIgnore the family history, since critical illness underwriting considers only the applicant's own record
- Rate the application or exclude the condition, since family history is central to critical illness pricing
- CDecline the application outright, since two first-degree relatives with the same condition make the risk uninsurable
- DIssue at standard rates, since family history affects life insurance but not critical illness
Correct answer: B) Rate the application or exclude the condition, since family history is central to critical illness pricing
Critical illness contracts pay on diagnosis of listed conditions, so a strong family history of a covered condition bears directly on the probability of a claim.
Why the other options are wrong
- AFamily history is explicitly part of critical illness underwriting.
- CA rating or exclusion is far more usual than a decline.
- DFamily history matters more for critical illness than for most other products.
Exam tip
For critical illness, family history is a front-line rating factor.
Common mistake
Quoting standard critical illness rates before family history is known.
What this tests
CISRO competency component 3.1 — 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:
- 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:
- An applicant is a professional with a high income but heavy business debt. In financial underwriting the debt:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.