LLQP Accident & Sickness · Component 3.1 · 25% of the exam
A group with a high proportion of employees in a hazardous industry will typically face:
- ANo effect, since group rates are set on the census rather than on the type of work performed
- BNo LTD availability at all, since insurers decline every group operating in a hazardous industry
- Higher LTD rates, possibly restricted definitions or maximums, and closer review of claims
- DLower rates, since workers in hazardous industries are already covered by workers' compensation
Correct answer: C) Higher LTD rates, possibly restricted definitions or maximums, and closer review of claims
Industry drives expected morbidity. Insurers price and design accordingly; some industries are declined by some carriers.
Why the other options are wrong
- AIndustry is a core factor.
- BCoverage is usually available with adjustments.
- DHazardous work raises expected claims and therefore group rates.
Exam tip
Hazardous industry → higher group LTD rates, design restrictions.
Common mistake
Promising a hazardous-industry group standard LTD pricing.
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.