LLQP Life Insurance · Component 1.1 · 35% of the exam
A client wants to keep her financial details private and provides only approximate figures. The agent should:
- AReport her to the regulator for refusing to cooperate with the know-your-client process that the licensing rules require of every agent
- BRefuse to help until she provides complete figures, since an analysis built on approximations cannot be relied on
- CEstimate the missing figures from her lifestyle and occupation, so the analysis can be completed without troubling her
- Explain why accurate information helps, proceed with what is provided, and document the limitations
Correct answer: D) Explain why accurate information helps, proceed with what is provided, and document the limitations
Clients control their information. The agent explains the value of accuracy and the privacy safeguards, uses what is given, and records that the analysis rests on approximations. The recommendation should be appropriately cautious.
Why the other options are wrong
- ADeclining to share details is not a regulatory matter.
- BRefusing abandons a client who can still be helped.
- CGuessing invents facts and produces an unreliable recommendation.
Exam tip
Work with what the client provides, explain the trade-off, and document the limits of the analysis.
Common mistake
Presenting an analysis built on approximations as if it were precise.
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.