LLQP Accident & Sickness · Component 3.1 · 25% of the exam
Possible outcomes of individual A&S underwriting include:
- AApproval at standard rates or decline, with no intermediate offers permitted by the regulator
- BApproval only, since applications that would be declined are withdrawn before they are submitted
- Standard issue, a rating, an exclusion rider, modified benefits, postponement, or decline
- DDecline for any application with a disclosed condition, and standard issue for all others
Correct answer: C) Standard issue, a rating, an exclusion rider, modified benefits, postponement, or decline
DI underwriting has more tools than life underwriting because benefit design can be modified. Agents must explain any modified offer before the client accepts.
Why the other options are wrong
- AMiddle outcomes are frequent.
- BModified offers and declines are common.
- DMost applications with disclosed conditions are issued in some form.
Exam tip
Outcomes: standard, rated, excluded, modified, postponed, declined.
Common mistake
Failing to explain a modified offer's changes.
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.