LLQP Accident & Sickness · Component 3.1 · 25% of the exam
When an insurer offers a DI policy with a rating and an exclusion, the agent's responsibility is to:
- AAccept the offer on the client's behalf, since the client authorized the application
- Explain the changes, obtain the client's signed amendment, and consider other insurers
- CCancel the application, since a rated offer indicates the client is a poor risk
- DDeliver the policy without mentioning the exclusion, since it is printed in the contract
Correct answer: B) Explain the changes, obtain the client's signed amendment, and consider other insurers
Modified offers require informed acceptance. Shopping the case may be appropriate. Concealing terms is misconduct.
Why the other options are wrong
- AThe client must accept personally.
- CThe offer may still be the best available.
- DConcealment is a breach of duty.
Exam tip
Modified offer: explain, get signed amendment, consider alternatives.
Common mistake
Delivering a modified policy without explaining the changes.
What this tests
CISRO competency component 3.1 — 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.