LLQP Life Insurance · Component 3.3 · 25% of the exam
A client asks whether she can change her mind after the policy is delivered. The agent should explain:
- ANo, the contract is final at delivery, and the only way to end it is to stop paying premiums and let it lapse at the end of the grace period
- BShe may return it within five years for a refund of all premiums, less the cost of the coverage provided
- Policies carry a free-look period after delivery during which she can return it for a full refund of premiums
- DOnly the insurer can cancel the policy, since the client's right to end the contract is limited to surrender
Correct answer: C) Policies carry a free-look period after delivery during which she can return it for a full refund of premiums
The free-look period (commonly ten days in most provinces) lets the client review the delivered contract and cancel for a full refund. It is a consumer protection the agent should point out at delivery rather than hope goes unused.
Why the other options are wrong
- ADelivery is not final; the free-look period allows cancellation.
- BThe free-look period is days, not years.
- DThe client can cancel within the free look.
Exam tip
Point out the free-look right at delivery; it is a consumer protection, and mentioning it builds trust.
Common mistake
Failing to mention the right to examine the policy.
What this tests
CISRO competency component 3.3 — 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.