LLQP Accident & Sickness · Component 3.2 · 25% of the exam
When recommending group benefits, the agent should advise the employer that changing insurers frequently for lower premiums:
- AHas no drawbacks, since a lower premium is always in the employer's and the employees' interest
- Can disrupt employees, cost more at renewal, and complicate claims already in progress
- CIs prohibited under provincial regulations that require a minimum contract term of three years
- DIs always beneficial, since competition among insurers keeps every renewal quote low
Correct answer: B) Can disrupt employees, cost more at renewal, and complicate claims already in progress
Marketing a group plan has costs. Ongoing claims stay with the prior insurer under typical transfer rules; new pre-existing limitations may apply.
Why the other options are wrong
- ADisruption and low-ball pricing are known issues.
- CChanging group insurers is permitted; the issue is the cost of doing so.
- DThere are real costs.
Exam tip
Group transfers: check ongoing claims, pre-ex rules, and renewal pricing.
Common mistake
Moving a group with an active LTD claimant without addressing the claim.
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.