LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A 'simplified issue' or 'guaranteed issue' DI or CI product is characterized by:
- AUnlimited benefit amounts, since the insurer relies entirely on the applicant's own declaration of health
- BFull medical underwriting completed by telephone interview rather than by a paramedical examination
- Limited or no medical underwriting, traded for lower maximums, more exclusions or higher premiums
- DThe strongest available definitions, since the insurer cannot rely on any medical evidence
Correct answer: C) Limited or no medical underwriting, traded for lower maximums, more exclusions or higher premiums
These products serve clients who cannot pass full underwriting. The trade-offs must be explained clearly.
Why the other options are wrong
- AAmounts are capped low.
- BUnderwriting is reduced or absent, not merely delivered differently.
- DDefinitions are usually weaker.
Exam tip
Simplified/guaranteed issue: easy to get, limited coverage, more exclusions.
Common mistake
Selling a simplified-issue product to a fully insurable client who could get better terms.
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.