LLQP Accident & Sickness · Component 2.1 · 30% of the exam
The 'pre-existing condition' provision in an individual DI policy generally:
- AExcludes all prior conditions permanently, whether or not they were disclosed
- BCovers every prior condition once the application has been accepted and issued
- Excludes undisclosed prior conditions for a stated period after issue
- DHas no effect because disclosed conditions are already covered by the policy
Correct answer: C) Excludes undisclosed prior conditions for a stated period after issue
The provision protects the insurer from undisclosed conditions during the early policy years. Disclosed conditions are either covered, rated or specifically excluded by rider, not caught by this clause.
Why the other options are wrong
- ADisclosed conditions are handled at underwriting and may be covered.
- BUndisclosed prior conditions are excluded during the stated period.
- DIt has real effect in early claims involving undisclosed conditions.
Exam tip
Pre-existing clause = undisclosed prior conditions, limited period. Disclosure avoids it.
Common mistake
Assuming a disclosed condition is caught by the pre-existing condition clause.
What this tests
CISRO competency component 2.1 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Accident & Sickness module. Written against the published curriculum.
More from component 2
- A group benefits booklet lists AD&D coverage alongside life and LTD. The AD&D benefit pays:
- A hospital indemnity (hospital cash) policy pays:
- Employment Insurance sickness benefits are available to:
- Which government program coordinates with an individual DI policy through a possible offset AND also affects the definition of insurable income?
- A group plan's 'eligibility waiting period' (probationary period) is:
- A CI policy that is 'convertible' allows the insured to:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.