LLQP Accident & Sickness · Component 3.3 · 25% of the exam
The 'duty of disclosure' in an A&S application requires the applicant to:
- ADisclose nothing about family members, since family medical history is protected personal information
- Disclose every material fact they know or ought to know, whether or not asked
- CDisclose only current conditions, since resolved conditions no longer have any bearing on the risk
- DDisclose only what is asked, since the insurer drafts its questions to cover everything it needs to know
Correct answer: B) Disclose every material fact they know or ought to know, whether or not asked
Insurance is a contract of utmost good faith. Materiality is judged by what a reasonable insurer would consider relevant.
Why the other options are wrong
- AFamily history is asked and material.
- CPast conditions are material.
- DMaterial facts must be disclosed even if unasked.
Exam tip
Utmost good faith: disclose all material facts, asked or not.
Common mistake
Advising a client that 'if they didn't ask, you don't have to say'.
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.