LLQP Accident & Sickness · Component 3.1 · 25% of the exam
A newly self-employed applicant (six months in business) applying for DI is likely to face:
- ADouble coverage, since the insurer counts both the prior salary and the new business income
- BA decline, since insurers require at least two years of business income before considering an application
- CStandard issue at the benefit requested, since the prior employment income is used in full
- Limited coverage — a starter benefit based on prior employment or a minimum amount
Correct answer: D) Limited coverage — a starter benefit based on prior employment or a minimum amount
Insurers offer new-business programs with modest benefits. Full financial underwriting follows once tax returns exist.
Why the other options are wrong
- ACoverage is limited, not expanded.
- BPrograms exist for new businesses.
- CUndocumented income cannot support standard issue.
Exam tip
New self-employed: starter benefit now, increase with returns later.
Common mistake
Telling a new business owner they must wait two years for any DI.
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.