LLQP Accident & Sickness · Component 3.1 · 25% of the exam
Group underwriting differs from individual underwriting in that it evaluates:
- The group as a whole — industry, size, age and sex mix, income, geography, participation and claims
- BOnly the youngest employee, whose health sets the baseline rate applied to the rest of the group
- COnly the owner, whose health determines whether the plan can be issued to the business at all
- DEach employee's health, through a medical questionnaire completed at the time of enrolment
Correct answer: A) The group as a whole — industry, size, age and sex mix, income, geography, participation and claims
The curriculum lists group underwriting criteria: type of industry, size of group, ages, sex, income, geography, participation, benefit design and claims history. Individual underwriting applies only to late applicants and excess amounts.
Why the other options are wrong
- BAge distribution matters, not one person.
- CThe owner is one member.
- DIndividual health is not assessed within non-evidence limits.
Exam tip
Group underwriting = the group's characteristics, not individuals.
Common mistake
Collecting medical questionnaires from every employee for a standard group plan.
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.