LLQP Accident & Sickness · Component 3.3 · 25% of the exam
An agent implementing a replacement of an existing A&S policy must:
- Complete the replacement disclosure, compare both contracts and keep the old policy in force until the new one is issued
- BCancel the existing policy immediately so that the client is not paying two premiums at the same time
- CRecommend replacement whenever the new contract offers a lower premium than the old one
- DLeave the existing insurer uninformed, since replacement is a private matter for the client
Correct answer: A) Complete the replacement disclosure, compare both contracts and keep the old policy in force until the new one is issued
Replacement carries new contestability, a new age and the loss of any features the old contract had, so the comparison must be documented and coverage must never be interrupted.
Why the other options are wrong
- BCancelling first leaves the client uninsured if the new application is declined or rated.
- CPrice alone does not establish that a replacement is in the client's interest.
- DReplacement disclosure requirements exist precisely to make the transaction transparent.
Exam tip
New policy in force first, old policy cancelled second.
Common mistake
Cancelling existing coverage on the day the new application is signed.
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.