LLQP Accident & Sickness · Component 3.1 · 25% of the exam
An underwriter assigns a disability applicant to occupational class 2 rather than class 4. The practical effect is that:
- AThe applicant must provide a paramedical examination that class 4 applicants are not asked to complete
- BThe applicant is treated as a preferred risk and receives the insurer's lowest available premium rate for the amount
- The premium per unit of benefit is higher and the definitions available may be narrower than for class 4
- DThe benefit period is automatically shortened to two years for every claim the applicant makes
Correct answer: C) The premium per unit of benefit is higher and the definitions available may be narrower than for class 4
Occupational class drives both price and product availability in disability underwriting, so a manual or hazardous class pays more for less generous features.
Why the other options are wrong
- AMedical requirements follow age and amount, not occupational class.
- BThe most favourable classes are the professional and sedentary ones.
- DBenefit period is a design choice, not a consequence of the class assigned.
Exam tip
Occupational class sets both the price and the shelf of features available.
Common mistake
Quoting professional-class rates to a client in a manual trade.
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
- 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:
- An applicant is a professional with a high income but heavy business debt. In financial underwriting the debt:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.