LLQP Accident & Sickness · Component 3.3 · 25% of the exam
If the client is not the person paying the premium (for example, a parent paying for an adult child's DI), the implementation should:
- ARefuse the sale, since disability insurance must always be paid for by the person who is insured
- Document the payer, complete third-party and AML forms, and confirm ownership and designations
- CName the payer as the life insured, since the payer is the one with the financial interest in the policy
- DIgnore the payer, since the insurer only needs to know who is covered and who owns the contract
Correct answer: B) Document the payer, complete third-party and AML forms, and confirm ownership and designations
Third-party payment raises identification and ownership questions. Documentation ensures clarity.
Why the other options are wrong
- AThird-party payment is permissible.
- CThe insured is the person covered.
- DThe payer must be identified.
Exam tip
Third-party payer: document, identify, confirm ownership.
Common mistake
Leaving ownership unclear when a parent pays.
What this tests
CISRO competency component 3.3 — 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.