LLQP Ethics & Professional Practice · Component 1.3 · 60% of the exam
A client whose birthday falls next week asks whether the policy can be dated earlier to secure a lower age. The agent should explain that:
- Athe insurer will set the date after the policy has been issued and cannot be influenced
- backdating to save age is permitted within limits, with premiums payable from that earlier date
- Cbackdating is prohibited in every circumstance because it misstates when the contract was made
- Dany date the client prefers may be used, since the effective date is chosen by the applicant
Correct answer: B) backdating to save age is permitted within limits, with premiums payable from that earlier date
Insurers allow a policy to be dated back a limited number of months to obtain a lower age. The owner pays premiums from the earlier date, so the saving must be weighed against the extra premium paid.
Why the other options are wrong
- AThe applicant may request an earlier date within the permitted range.
- CBackdating to save age is a recognized practice within defined limits.
- DThe permitted period is limited and set by the insurer and the legislation.
Exam tip
Backdating to save age is allowed within limits and costs extra premium.
Common mistake
Confusing permitted backdating to save age with falsifying a signature date.
What this tests
CISRO competency component 1.3 — Integrate into practice the legal aspects of insurance and annuity contracts — which is weighted at 60% of the Ethics & Professional Practice module. Written against the published curriculum.
More from component 1
- An 'assignee' of a life insurance policy is:
- A corporation as policyowner and beneficiary of a policy on a key employee:
- A 'trustee' named to receive proceeds on behalf of a beneficiary:
- The 'automatic premium loan' (APL) provision:
- A life insurance contract 'matures' when:
- The 'assignment' provision typically states that:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.