LLQP Accident & Sickness · Component 3.2 · 25% of the exam
For a client who is uninsurable for individual DI, the recommendation should explore:
- ADescribing the condition in the most favourable terms so that the application passes underwriting
- Group or association coverage, simplified issue products, government programs, other products and savings
- CNothing, since an uninsurable client cannot be helped and the file should be closed
- DLife insurance instead, since it is easier to obtain and the premiums are lower
Correct answer: B) Group or association coverage, simplified issue products, government programs, other products and savings
Suitability includes finding the best available option and documenting the limits. Different products underwrite different risks; a DI decline does not always mean a CI decline.
Why the other options are wrong
- AMisstating health on an application is fraud and voids the contract.
- CAlternatives exist for uninsurable clients; the analysis should explore them.
- DLife insurance does not address the need.
Exam tip
Uninsurable for DI: group/association, simplified issue, other products, government, savings.
Common mistake
Ending the engagement at a DI decline.
What this tests
CISRO competency component 3.2 — 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.