LLQP Accident & Sickness · Component 3.3 · 25% of the exam
The 'free-look' or rescission period gives the policyowner the right to:
- AExtend the contestability period so that the insurer has longer to review the application for errors
- Cancel the policy within a stated period after delivery and receive a full premium refund
- CChange the beneficiary without the insurer's consent at any time during the first ten days
- DSue the insurer for any misrepresentation discovered during the first ten days after delivery
Correct answer: B) Cancel the policy within a stated period after delivery and receive a full premium refund
Free-look protects clients from pressure sales. Agents should explain it at delivery.
Why the other options are wrong
- AContestability is set by law and contract.
- CBeneficiary changes are separate.
- DLegal actions are governed by other provisions.
Exam tip
Free-look: cancel within ~10 days, full refund.
Common mistake
Failing to mention the free-look period.
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.