LLQP Life Insurance · Component 3.2 · 25% of the exam
A client with a clear need proves uninsurable at every market the agent approaches. The recommendation should then:
- Aplace coverage on a healthier family member in place of the client
- Bresubmit the identical application repeatedly until an insurer eventually accepts the risk
- Cend, since there is nothing further an agent can usefully do for this client
- consider guaranteed issue coverage, group options and non-insurance strategies
Correct answer: D) consider guaranteed issue coverage, group options and non-insurance strategies
Guaranteed issue products, association or employer group coverage and savings strategies can each reduce the exposure. The remaining gap should be documented and revisited if the client's health changes.
Why the other options are wrong
- AInsuring a different life does not address this client's risk.
- BRepeated identical submissions produce the same result.
- CAlternatives exist even where individual underwriting fails.
Exam tip
Uninsurable is not the end; guaranteed issue and group options remain.
Common mistake
Closing a file because individual underwriting was unsuccessful.
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.