LLQP Accident & Sickness · Component 3.3 · 25% of the exam
The agent must verify the client's identity for a large annuity-style A&S transaction because:
- Anti-money-laundering rules require identification, record keeping and third-party determination
- BProvincial insurance councils require photo identification for every insurance application that is taken
- CThe insurer needs a photograph for the policy file and the client's certificate of coverage
- DIdentification is used to confirm the client's occupational class for underwriting purposes
Correct answer: A) Anti-money-laundering rules require identification, record keeping and third-party determination
Federal anti-money-laundering obligations apply to specified insurance transactions, and the agent's file must show identification, source of funds and whether anyone else directs the account.
Why the other options are wrong
- BIdentification is a federal anti-money-laundering requirement rather than a licensing one.
- CNo photograph forms part of an insurance file.
- DOccupational class comes from the duties described on the application.
Exam tip
Identify, record, and ask about third parties.
Common mistake
Skipping identification for a client the agent has known for years.
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.