LLQP Accident & Sickness · Component 3.3 · 25% of the exam
The 'effective date' of an individual A&S policy is generally:
- AThe date the application was signed, since that is when the client's obligations under the contract begin
- BThe date of the first claim, since the contract has no practical effect until a loss actually occurs
- CThe date the agent was licensed to sell the product in the province where the client lives
- The date in the policy, usually issue or delivery once the premium is paid; backdating to save age may be allowed
Correct answer: D) The date in the policy, usually issue or delivery once the premium is paid; backdating to save age may be allowed
Effective date determines when coverage begins and when contestability and pre-existing periods run. Backdating rules are insurer-specific.
Why the other options are wrong
- ASigning is the offer, not effectiveness.
- BClaims follow coverage.
- CThe agent's licensing date has nothing to do with the policy's effective date.
Exam tip
Effective date: as stated, after premium and delivery conditions; starts the clocks.
Common mistake
Telling a client coverage started when they signed.
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.