LLQP Accident & Sickness · Component 3.1 · 25% of the exam
Group long-term disability coverage within the non-evidence maximum is issued without individual medical questions because:
- AProvincial legislation forbids insurers from asking group members any medical questions
- BGroup members are presumed healthy because they are actively at work on the effective date
- CThe employer guarantees the claims, so the insurer carries no risk on those amounts
- The insurer underwrites the group as a whole and the benefit formula limits anti-selection
Correct answer: D) The insurer underwrites the group as a whole and the benefit formula limits anti-selection
Group pricing rests on the characteristics of the whole population together with an objective formula that stops members choosing their own amounts.
Why the other options are wrong
- ANo legislation prevents medical questions; the insurer chooses not to ask them.
- BActively-at-work rules limit claims in progress but do not presume good health.
- CThe insurer carries the risk under an insured group contract.
Exam tip
The group is underwritten, not the member.
Common mistake
Explaining group issue as though the members had been assessed individually.
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:
- 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.