LLQP Life Insurance · Component 3.2 · 25% of the exam
A client's spouse is not present when the agent presents a recommendation that names the spouse as beneficiary and affects the household budget. Best practice is to:
- AProceed without the spouse, since the client is the applicant and the spouse's involvement is not required by the insurer at any stage
- Encourage both spouses to participate, since the decisions affect both of them directly
- CSign the application on the spouse's behalf where a signature is needed, since the client has confirmed the spouse agrees
- DRefuse to proceed until the spouse attends, since a recommendation that affects the household cannot be made to one person
Correct answer: B) Encourage both spouses to participate, since the decisions affect both of them directly
Household insurance decisions are joint decisions. Involving both spouses improves the analysis (the spouse's coverage, income and wishes) and reduces later disputes. The policyholder can still decide alone if that is their choice.
Why the other options are wrong
- AProceeding alone is permissible but not best practice.
- CSigning for another person is fraud.
- DRefusal is unnecessary.
Exam tip
Family coverage is a family conversation; invite both spouses.
Common mistake
Analyzing one spouse's needs in isolation.
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.