LLQP Ethics & Professional Practice · Component 1.3 · 60% of the exam
The insurer's 'right to examine' or require evidence during formation:
- Lets the insurer require medical evidence before deciding; after issue only for reinstatement, increases or riders
- BDoes not exist, since the applicant's answers on the application are the only evidence the insurer may consider
- CIs unlimited and continues for the life of the contract, so the insurer may demand new evidence whenever it wishes
- DApplies after issue at the insurer's discretion, so a new medical may be required at each policy anniversary
Correct answer: A) Lets the insurer require medical evidence before deciding; after issue only for reinstatement, increases or riders
Underwriting occurs before acceptance; post-issue evidence is limited to specific events.
Why the other options are wrong
- BUnderwriting rights exist.
- CPost-issue rights are limited.
- DAfter issue the insurer cannot demand evidence at will.
Exam tip
Evidence at application, reinstatement, increases — not at random after issue.
Common mistake
Telling a client the insurer can demand a new medical any time.
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.