LLQP Accident & Sickness · Component 3.1 · 25% of the exam
In group underwriting, 'geographic location' matters because:
- AIt does not matter, since group plans are priced nationally by federally regulated insurers
- BPostage and courier costs for processing claims vary considerably between provinces
- CSome provinces prohibit group insurance for employers with fewer than ten full-time employees
- Provincial plans, claims patterns, provider costs and disability incidence vary by region
Correct answer: D) Provincial plans, claims patterns, provider costs and disability incidence vary by region
Regional differences in provincial coverage (drug plans, for example) and health costs feed group pricing. Widely dispersed groups may need multiple provincial designs.
Why the other options are wrong
- AGeography is a listed factor.
- BPostage and mailing costs are trivial and not an underwriting factor.
- CGroup insurance is available everywhere.
Exam tip
Geography affects provincial plan interaction and cost levels.
Common mistake
Ignoring provincial differences in a multi-province group.
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.