LLQP Accident & Sickness · Component 3.2 · 25% of the exam
When a client's needs exceed the benefit an insurer will issue, the recommendation should:
- AState a higher income on the application so that the insurer will issue the full amount needed
- Issue the maximum available, explain the gap, and plan to close it later through FPO or reapplication
- CApply to two insurers for the same amount so that the combined benefits meet the need
- DAbandon the sale, since a policy that does not meet the full need is unsuitable
Correct answer: B) Issue the maximum available, explain the gap, and plan to close it later through FPO or reapplication
Limits are real. Honest planning to close the gap over time is the professional approach; misrepresentation is fraud.
Why the other options are wrong
- AMisrepresenting income is fraud.
- CUndisclosed duplicate applications breach participation limits.
- DPartial coverage is better than none.
Exam tip
Gap above limits: take the maximum, plan future increases.
Common mistake
Applying to multiple insurers without disclosing each to the others.
What this tests
CISRO competency component 3.2 — 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.