LLQP Accident & Sickness · Component 3.3 · 25% of the exam
An A&S application asks whether the applicant has other coverage in force or pending. The purpose is to:
- AConfirm the applicant's credit standing across the insurance industry as a whole
- BIdentify which other insurer the agent should approach if this particular application is declined
- CDetermine which existing policy the applicant should cancel before this one is issued
- Assess total exposure, since combined benefits above the issue limit are reduced or refused
Correct answer: D) Assess total exposure, since combined benefits above the issue limit are reduced or refused
Financial underwriting operates across all coverage in force and applied for, so undisclosed applications elsewhere can produce an issue the insurer would not have made.
Why the other options are wrong
- AInsurance applications do not assess credit standing.
- BThe question is about total exposure, not about where to apply next.
- CNothing requires an applicant to cancel existing coverage.
Exam tip
Other coverage in force or pending is a financial underwriting question.
Common mistake
Leaving a pending application with another insurer off the form.
What this tests
CISRO competency component 3.3 — 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.