LLQP Life Insurance · Component 3.2 · 25% of the exam
A client has been offered a policy with a two-table rating. The agent explains the offer. The client asks whether accepting it is wise. The professional response is to:
- ATell the client to decline the offer, since a rated policy is poor value and a better offer may be available from another insurer
- BSay nothing about the wisdom of accepting, since the decision is the client's and the agent must not influence it
- CAccept the offer on the client's behalf, since the client has asked for the agent's advice and the agent knows the market
- Explain the rating, premium, alternatives and the risk of remaining uninsured, and document it
Correct answer: D) Explain the rating, premium, alternatives and the risk of remaining uninsured, and document it
A rated offer is still coverage. For many clients it is the best available and better than none. The agent informs; the client decides; the file records it.
Why the other options are wrong
- ADeclining may leave the client uninsured.
- BSilence fails the duty to advise.
- CThe agent cannot accept for the client.
Exam tip
Rated offer: explain, compare alternatives, document the decision.
Common mistake
Letting a rated offer lapse without a proper conversation.
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.