LLQP Accident & Sickness · Component 3.1 · 25% of the exam
Simplified issue A&S products ask fewer medical questions than fully underwritten contracts. The trade-off is that they:
- AAre available only to applicants who have already been declined by another insurer
- BProvide broader definitions, since the insurer cannot price the individual risk precisely
- CCost less per unit of benefit, because the insurer saves the expense of full medical evidence
- Cost more and often carry pre-existing condition limitations that apply when a claim is made
Correct answer: D) Cost more and often carry pre-existing condition limitations that apply when a claim is made
Light underwriting shifts the assessment from issue to claim, and the price reflects the wider range of risks the insurer has accepted without evidence.
Why the other options are wrong
- AThey are open to anyone within the eligibility rules.
- BDefinitions in simplified products are generally narrower.
- CSimplified products are priced higher, not lower, than fully underwritten ones.
Exam tip
Fewer questions at issue means more questions at claim.
Common mistake
Presenting simplified issue as an easier route to the same coverage.
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.