LLQP Accident & Sickness · Component 3.1 · 25% of the exam
An applicant is postponed rather than declined for critical illness coverage. This means:
- AThe insurer will issue once the applicant has paid an additional premium for the delay
- BThe insurer has refused the risk permanently and the applicant should not apply again
- The insurer has deferred its decision, usually pending investigation or stabilization
- DThe application has been approved but will not take effect until the following policy year
Correct answer: C) The insurer has deferred its decision, usually pending investigation or stabilization
A postponement is an invitation to reapply once the picture is clearer, and the agent should record the suggested date so the file is revisited rather than abandoned.
Why the other options are wrong
- ANo premium is charged to lift a postponement.
- BA postponement is not a decline, and reapplication is expected.
- DNothing has been approved; the decision is outstanding.
Exam tip
Postponed means come back later, not refused.
Common mistake
Telling a postponed client they have been declined.
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.