LLQP Accident & Sickness · Component 3.1 · 25% of the exam
An applicant answers the tobacco question as a non-smoker but a urine sample detects nicotine. The insurer will:
- AIssue the coverage at non-smoker rates, since the applicant's signed declaration governs the class assigned
- BIgnore the laboratory finding, since nicotine testing is not permitted in A&S underwriting
- CRefund the premium and close the file without informing the applicant of the reason
- Reassess the application at smoker rates and may treat the answer as a material misrepresentation
Correct answer: D) Reassess the application at smoker rates and may treat the answer as a material misrepresentation
Laboratory results are used precisely to verify declarations, and an answer contradicted by testing raises both a pricing question and a disclosure question.
Why the other options are wrong
- AThe declaration does not override objective evidence.
- BNicotine screening is a standard part of the laboratory profile.
- CInsurers communicate their decision and the applicant may respond.
Exam tip
Smoking status is tested, not taken on trust.
Common mistake
Letting a client answer the tobacco question loosely.
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.