LLQP Life Insurance · Component 3.3 · 25% of the exam
A client wants to keep an application 'on hold' after approval while deciding. The agent should explain that:
- AThe premium is refunded in full if the client decides not to proceed, since the insurer has not yet issued the policy to the client
- BApprovals last forever, since the insurer has assessed the risk and the assessment does not change with time
- CThe insurer will wait indefinitely, since it has no reason to withdraw an offer it has already made
- Underwriting approvals expire after a set period, after which a new application may be required
Correct answer: D) Underwriting approvals expire after a set period, after which a new application may be required
Offers to insure have a validity period. Delay risks re-underwriting at an older age and current health. The agent should make the timeline clear during the recommendation.
Why the other options are wrong
- ANo premium was paid to refund.
- BApprovals have expiry dates.
- CInsurers do not hold offers open indefinitely.
Exam tip
Approved offers expire; place the policy within the window.
Common mistake
Letting an approved case sit until the offer lapses.
What this tests
CISRO competency component 3.3 — 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.