LLQP Accident & Sickness · Component 3.1 · 25% of the exam
Mental health history in DI underwriting:
- AAffects critical illness underwriting only, since disability insurance covers physical conditions
- Is significant, since mental disorders lead long-term claims; exclusions, limits or ratings may follow
- CIs ignored under human rights legislation, which prohibits insurers from asking about mental health
- DAlways results in a decline, since mental health claims cannot be independently verified
Correct answer: B) Is significant, since mental disorders lead long-term claims; exclusions, limits or ratings may follow
Mental health claims are frequent and long. Underwriters weigh severity, treatment, recency and stability. Many policies limit mental/nervous benefit periods regardless.
Why the other options are wrong
- AIt affects DI more than CI.
- CIt is a major DI factor and may be asked.
- DMild, treated, stable conditions are often insurable.
Exam tip
Mental health: leading DI claim cause; disclosed fully, assessed on stability.
Common mistake
Advising a client not to mention past counselling.
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.