LLQP Accident & Sickness · Component 3.3 · 25% of the exam
Which statement about the agent's authority in implementing an A&S policy is correct?
- AThe agent may waive the paramedical examination when the client's health is obviously good
- BThe agent may extend the free-look period for a client who needs more time to consider the policy
- CThe agent may bind coverage by accepting the first premium together with the signed application
- The agent cannot bind the insurer, waive requirements or alter the contract
Correct answer: D) The agent cannot bind the insurer, waive requirements or alter the contract
Agents solicit and service; underwriting and contract authority rest with the insurer. Statements to the contrary mislead clients.
Why the other options are wrong
- ARequirements are the insurer's.
- BThe free-look is set by the insurer and law.
- CBinding authority is not given to A&S agents.
Exam tip
The agent cannot bind, waive or alter; only the insurer can.
Common mistake
Telling a client 'you're covered' before the insurer approves.
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.