LLQP Accident & Sickness · Component 3.1 · 25% of the exam
For a DI applicant whose income has been volatile for three years, the underwriter will most likely:
- AUse the highest of the three years, since that reflects the applicant's true earning capacity
- BDecline the application, since volatile income cannot support a fixed monthly benefit
- Average the years or use the lowest recent year, and may issue less than requested
- DIgnore income altogether and issue the benefit requested on the strength of the occupation
Correct answer: C) Average the years or use the lowest recent year, and may issue less than requested
Volatility is handled conservatively. The agent should set expectations that the benefit may be reduced.
Why the other options are wrong
- AUnderwriters do not use the peak year.
- BVolatility reduces the amount, not insurability.
- DIncome is the central financial underwriting input; it is never ignored.
Exam tip
Volatile income → averaged or conservative benefit; increase later.
Common mistake
Promising the benefit based on the best year.
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.