LLQP Life Insurance · Component 3.2 · 25% of the exam
A client asks an agent to recommend an insurer solely on the basis of the lowest premium. The agent should also weigh:
- AThe agent's convenience in placing the business, since a smooth process benefits the client as well as the agent
- BThe insurer's logo and brand recognition, since a well-known insurer is more likely to be trusted by the beneficiaries
- The insurer's financial strength, contract guarantees, service and claims reputation, and product features
- DNothing else, since the client has asked for the lowest premium and the agent's role is to find it
Correct answer: C) The insurer's financial strength, contract guarantees, service and claims reputation, and product features
Price matters, but a life policy is a promise that may be tested forty years from now. Assuris protection limits are a backstop, not a substitute for choosing a sound insurer with clear contract terms.
Why the other options are wrong
- AThe agent's convenience is not the client's interest.
- BBranding is irrelevant.
- DPrice alone ignores what the client is buying.
Exam tip
Compare price alongside strength, guarantees, definitions and service.
Common mistake
Recommending the cheapest quote without reading the contract terms.
What this tests
CISRO competency component 3.2 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Life Insurance module. Written against the published curriculum.
More from component 3
- At policy delivery, the agent should obtain:
- The effective date of a life insurance policy is generally:
- A client's application is approved but he has not paid the first premium when the policy is delivered. The agent should:
- A pre-authorized debit form is part of implementation because:
- During implementation, the agent learns the client wants the policy owned by her corporation instead of personally, as first applied for. The correct step is:
- Which of the following is a legitimate reason an insurer might refuse to issue a policy even after favourable underwriting?
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.