LLQP Accident & Sickness · Component 3.1 · 25% of the exam
An applicant's failure to disclose a material fact on an A&S application, discovered within the contestability period, allows the insurer to:
- ACancel every other policy the applicant holds with the insurer, including life and health coverage
- Void the policy and refund premiums, or decline the claim, even if the fact is unrelated to the claim
- CRaise the premium retroactively to what it would have been had the fact been disclosed
- DDo nothing, since the insurer had the opportunity to obtain medical records during underwriting
Correct answer: B) Void the policy and refund premiums, or decline the claim, even if the fact is unrelated to the claim
Material misrepresentation within two years voids the contract regardless of causal link. This is why complete disclosure is essential.
Why the other options are wrong
- AOther policies are unaffected.
- CRescission, not repricing, is the remedy.
- DMisrepresentation has consequences.
Exam tip
Material misrepresentation within 2 years → rescission, no causal link needed.
Common mistake
Believing an unrelated omission cannot affect a claim.
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.