LLQP Life Insurance · Component 1.1 · 35% of the exam
A client mentions she is a smoker who quit two months ago. For fact-finding and underwriting purposes, she is:
- AA preferred risk, since she has demonstrated the discipline to quit and her health will improve rapidly
- BA non-smoker, since she is not smoking at the time of the application and answers the question honestly
- Still a smoker by most insurers' definitions, which require a period, often twelve months, of no tobacco use
- DUninsurable, since insurers will not issue coverage during the first year after a client stops smoking because of the relapse risk
Correct answer: C) Still a smoker by most insurers' definitions, which require a period, often twelve months, of no tobacco use
Non-smoker rates usually require no tobacco or nicotine use for at least a year, confirmed by testing. The agent records the facts accurately; misstating smoking status is a material misrepresentation with serious claim consequences.
Why the other options are wrong
- ARecent smoking excludes preferred classes.
- BTwo months does not meet the usual non-smoker definition.
- DSmokers are insurable at smoker rates.
Exam tip
Ask the exact tobacco and nicotine question the application asks, and record the date of last use.
Common mistake
Letting a recent quitter apply as a non-smoker.
What this tests
CISRO competency component 1.1 — Assess the client's needs and situation — which is weighted at 35% of the Life Insurance module. Written against the published curriculum.
More from component 1
- A client's existing policies were all sold by another agent who has left the business. The reviewing agent should:
- A client supports an adult child with a permanent disability who will never be self-sufficient. In the needs analysis this is:
- A self-employed client's income fluctuates widely year to year. When determining the income to replace, the agent should:
- A 58-year-old client plans to retire at 65 and has a pension that will pay a survivor benefit. How does time to retirement affect the life insurance need?
- Which of the following is a capital expense arising at death, rather than an ongoing income need?
- A client is the sole income earner in a household with a stay-at-home spouse and two young children. The greatest risk that life insurance on the client addresses is:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.