Your client Lyndah has a group plan through her employer which provides life insurance, extended health, dental, and short term and long-term disability (STD and LTD). Lyndah also wants to explore additional disability coverage through you. Lyndah applies for additional LTD coverage which would benefit of $2,000 per month. Her existing employer LTD plan also provides an LTD benefit of 66 2/3% of base salary of $ 3,000per month. The underwriting department declines Lyndahs application due to limits which might resultin a anti-selection and or the potential for the insured to malinger claims. Which of the following Best describes why Lyndahs application was denied in this scenario?

1. Lyndah would be under insured with the addition of the new coverage
2. Lyndah has shown to have a high lapse race in her employer plan
3. Lyndah would be over insured with the addition of the new coverage
4. Lyndahs ratings and exclusions are below the standard range.