LLQP Life Insurance · Component 3.1 · 25% of the exam
A client asks how long underwriting will take. The most useful answer identifies that the main delays are:
- outstanding medical requirements and reports from the applicant's own physician
- Bthe insurer's internal approval committee and its scheduled monthly meetings
- Cthe insurer's need to obtain the regulator's approval for each individual policy
- Dthe agent's workload and the time needed to prepare the final illustration
Correct answer: A) outstanding medical requirements and reports from the applicant's own physician
Physician reports are the most common cause of delay and are largely outside the insurer's control. Explaining this at application, and following up on requirements, keeps expectations realistic.
Why the other options are wrong
- BOrdinary applications are not decided by a scheduled committee.
- CIndividual policies do not require regulatory approval.
- DIllustration preparation is not what holds up underwriting.
Exam tip
Physician reports are the usual bottleneck; set expectations early.
Common mistake
Promising a placement date the underwriting cannot support.
What this tests
CISRO competency component 3.1 — 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.