LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A DI policy issued with a 'rating' (extra premium) reflects:
- AAn administrative error the agent should ask the insurer to correct before delivering the policy
- BA discount for good health, applied as a percentage reduction to the standard premium
- CA shorter waiting period granted in exchange for a higher monthly premium on the policy
- A higher-than-standard risk priced with an extra premium instead of an exclusion
Correct answer: D) A higher-than-standard risk priced with an extra premium instead of an exclusion
Underwriting outcomes: standard, rated, excluded (rider), modified benefits, postponed, declined. Ratings preserve coverage at a higher price.
Why the other options are wrong
- AIt is a deliberate underwriting decision.
- BA rating is an increase, not a discount.
- CRatings affect price, not the waiting period.
Exam tip
Rating = extra premium for extra risk; alternative to exclusion or decline.
Common mistake
Failing to explain a rating before the client signs the amendment.
What this tests
CISRO competency component 2.1 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Accident & Sickness module. Written against the published curriculum.
More from component 2
- A group benefits booklet lists AD&D coverage alongside life and LTD. The AD&D benefit pays:
- A hospital indemnity (hospital cash) policy pays:
- Employment Insurance sickness benefits are available to:
- Which government program coordinates with an individual DI policy through a possible offset AND also affects the definition of insurable income?
- A group plan's 'eligibility waiting period' (probationary period) is:
- A CI policy that is 'convertible' allows the insured to:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.