LLQP Accident & Sickness · Component 3.3 · 25% of the exam
An A&S policy is issued with a rating and an exclusion. At delivery the agent must:
- ASign the amendment on the client's behalf to avoid delaying the start of the coverage
- BDeliver the policy and let the client discover the amendments for themselves when reading the contract
- CRefuse delivery until the insurer removes the exclusion the client did not apply for
- Explain the amendments, obtain the client's signed acceptance and note the free-look period
Correct answer: D) Explain the amendments, obtain the client's signed acceptance and note the free-look period
A policy issued other than as applied for is a counter-offer, so the client's informed acceptance is what brings the contract into force.
Why the other options are wrong
- ASigning for a client is forgery in any circumstances.
- BDelivery without explanation fails the duty to inform and risks a later complaint.
- CThe agent cannot compel the insurer to change its underwriting decision.
Exam tip
Amended terms are a counter-offer that the client must accept.
Common mistake
Leaving a rated policy with a client who never noticed the rating.
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.