LLQP Life Insurance · Component 3.2 · 25% of the exam
A client's recommendation includes both a life policy and a critical illness policy. The written recommendation should explain the CI policy's relationship to the life coverage by:
- ATreating them as interchangeable, since both pay a lump sum and the client can use either to cover the same needs
- BOmitting the CI policy from the write-up, since it is a supplementary product and the life policy is the main recommendation
- Distinguishing the risks each addresses, death versus a serious diagnosis, so the client sees why both are recommended
- DMerging them into one premium figure, so the client sees the total cost of protection without the complexity of two contracts
Correct answer: C) Distinguishing the risks each addresses, death versus a serious diagnosis, so the client sees why both are recommended
Life and CI cover different events. A recommendation that presents both should make the distinction clear so the client is not surprised by which policy responds to which event.
Why the other options are wrong
- AThey cover different risks.
- BOmitting a recommended policy from the write-up is incomplete.
- DSeparate contracts have separate premiums.
Exam tip
When recommending multiple lines, state which risk each product covers.
Common mistake
Leaving the client unclear about what CI pays versus life.
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.