LLQP Accident & Sickness · Component 3.3 · 25% of the exam
The first premium for an individual A&S policy is usually collected:
- AAfter the first claim has been approved, when the insurer deducts it from the benefit that is payable
- BNever in advance, since the insurer bills the first premium only after the policy has been issued and delivered
- With the application or at delivery; the contract is not in force until it is paid
- DBy the beneficiary, who is the person with the financial interest in keeping the policy in force
Correct answer: C) With the application or at delivery; the contract is not in force until it is paid
Consideration is required for the contract. Timing depends on whether conditional coverage is offered.
Why the other options are wrong
- ACoverage requires premium first.
- BPremium is essential to form the contract.
- DThe policyowner pays.
Exam tip
No premium, no contract.
Common mistake
Delivering a policy and leaving without arranging the first premium.
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.