LLQP Accident & Sickness · Component 3.3 · 25% of the exam
Which implementation requirement is unique to disability buyout or key person coverage compared with personal DI?
- AA medical questionnaire completed by the life insured, which personal DI applicants are not required to complete
- BA paramedical examination, which is waived on personal DI applications below a stated benefit amount
- Documentation of the business relationship and corporate signatures as applicant, owner and beneficiary
- DIncome tax returns for the past two years, which personal DI applicants are never asked to provide
Correct answer: C) Documentation of the business relationship and corporate signatures as applicant, owner and beneficiary
Business coverage requires the business to be the applicant and beneficiary with supporting documents. Personal DI does not.
Why the other options are wrong
- AMedical questionnaires are common to both.
- BParamedicals apply to both.
- DTax returns are common to both.
Exam tip
Business coverage: agreement/valuation documents, corporate signatures.
Common mistake
Naming the individual as owner of a buyout policy meant for the business.
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.