LLQP Life Insurance · Component 3.2 · 25% of the exam
A client asks why the illustration shows both 'guaranteed' and 'non-guaranteed' columns. The agent should explain that:
- Guaranteed columns show contractual minimums; non-guaranteed columns show projections under current assumptions
- BThe guaranteed columns are optional, so the client may choose whether the insurer applies them to the policy
- CThe non-guaranteed columns are the insurer's promise, since they are based on the insurer's current dividend scale
- DOnly the non-guaranteed columns matter, since the guaranteed values are so low that no policy ever falls to them
Correct answer: A) Guaranteed columns show contractual minimums; non-guaranteed columns show projections under current assumptions
Illustration regulation requires both. The client should anchor expectations on the guaranteed columns and treat the rest as a scenario. Agents who sell on the non-guaranteed numbers invite complaints when reality differs.
Why the other options are wrong
- BGuaranteed values are contractual.
- CNon-guaranteed values are projections, not promises.
- DThe guaranteed columns matter most.
Exam tip
Point to the guaranteed column first; call the rest a scenario.
Common mistake
Selling on the highlighted non-guaranteed projection.
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.