LLQP Accident & Sickness · Component 2.1 · 30% of the exam
Under a group plan, 'evidence of insurability' is generally required when:
- AEvery employee joins the plan, since group underwriting reviews each member's health history at enrolment
- An employee applies late, seeks coverage above the non-evidence maximum, or elects optional benefits
- CNever, since group coverage is issued to the sponsor without regard to any individual member's health
- DThe employer changes ownership, since a new owner must re-underwrite every member of the existing group
Correct answer: B) An employee applies late, seeks coverage above the non-evidence maximum, or elects optional benefits
Timely enrolment within the non-evidence maximum is automatic. Late applicants and excess amounts are underwritten to prevent anti-selection.
Why the other options are wrong
- ATimely enrolment within the non-evidence maximum needs no evidence.
- CLate applicants and excess amounts are individually underwritten.
- DA change of ownership is not an evidence trigger in itself.
Exam tip
Group evidence triggers: late applicant, excess over NEM, optional benefits.
Common mistake
Telling an employee they can join the plan any time without evidence.
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.