LLQP Accident & Sickness · Component 3.1 · 25% of the exam
An applicant's disclosure of other disability coverage in force or applied for matters because:
- Participation limits apply to all coverage combined, and non-disclosure is misrepresentation
- BThe insurer will cancel the other policy so that the new one becomes the client's only coverage
- CIt is optional, since each insurer underwrites its own policy without regard to any others
- DIt affects the beneficiary, since disability benefits from two policies must be paid to the same person
Correct answer: A) Participation limits apply to all coverage combined, and non-disclosure is misrepresentation
Other coverage is a material fact for DI. The application asks specifically. Non-disclosure risks both benefit reduction and contestability.
Why the other options are wrong
- BThe insurer has no power over other policies.
- CIt is a required disclosure.
- DBeneficiaries are irrelevant to DI.
Exam tip
Disclose all DI coverage in force and pending; it is material.
Common mistake
Leaving group LTD off the application because it is 'through work'.
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.