LLQP Accident & Sickness · Component 3.3 · 25% of the exam
When an insurer issues a DI policy 'other than as applied for' (for example, a longer waiting period), the policy is:
- AIn force immediately, since the insurer has approved the application and issued a contract in the client's name
- A counter-offer the client must accept, usually by signing an amendment and paying the premium
- CVoid, since the insurer cannot issue a policy on terms that differ from those that were applied for
- DAutomatically accepted, since the client authorized the insurer to issue coverage on whatever terms it saw fit
Correct answer: B) A counter-offer the client must accept, usually by signing an amendment and paying the premium
A modified offer is a counter-offer. Without acceptance there is no contract.
Why the other options are wrong
- AAcceptance is required.
- CIt is valid on acceptance.
- DAcceptance must be express.
Exam tip
Modified issue = counter-offer; signed amendment needed.
Common mistake
Treating a modified policy as in force before the amendment is signed.
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.