LLQP Accident & Sickness · Component 3.1 · 25% of the exam
A group LTD member whose salary increases above the non-evidence maximum:
- Must submit evidence of insurability for the excess, which may be approved, rated or declined
- BIs automatically covered for the increase, since group coverage follows salary without limit
- CPays no premium on the excess until the insurer has confirmed the new salary with the employer
- DLoses coverage entirely until a new application for the full amount has been approved
Correct answer: A) Must submit evidence of insurability for the excess, which may be approved, rated or declined
The NEM caps automatic coverage; increases above it are individually underwritten. Members with health issues may be capped at the NEM.
Why the other options are wrong
- BExcess coverage requires evidence.
- CPremium applies to all coverage once issued.
- DCoverage to the NEM continues.
Exam tip
Salary above NEM → evidence for the excess.
Common mistake
Assuming group coverage grows automatically without limit.
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:
- 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.