LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
An applicant mentions that she once took a genetic test. Under federal law the agent must understand that:
- Athe insurer may require the results as part of ordinary underwriting for any policy it proposes to issue
- Bgenetic test results must be reported to the insurer by the agent whenever they are mentioned
- Cthe applicant is disqualified from coverage until the results have been provided in full
- a person cannot be required to undergo or disclose a genetic test as a condition of a contract
Correct answer: D) a person cannot be required to undergo or disclose a genetic test as a condition of a contract
The legislation prohibits requiring anyone to take a genetic test or to disclose its results as a condition of entering a contract. Ordinary medical history, family history and examinations remain part of underwriting.
Why the other options are wrong
- ARequiring genetic test results as a condition is precisely what the law forbids.
- BThe agent should not push information the law protects toward the insurer.
- CNo applicant can be disqualified for declining to disclose a genetic test.
Exam tip
Genetic test results cannot be demanded; ordinary medical history still can.
Common mistake
Recording a genetic test result on an application because the client mentioned it.
What this tests
CISRO competency component 1.1 — 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.