LLQP Life Insurance · Component 3.2 · 25% of the exam
A complete recommendation should include a review date because:
- Ainsurers require an annual review before they will pay any future claim
- Billustrations expire and must be reissued at regular intervals by the insurer
- circumstances change, and coverage that fits today may not fit in a few years
- Dthe agent's licence requires a stated number of client meetings each year
Correct answer: C) circumstances change, and coverage that fits today may not fit in a few years
Setting a review date makes continuing suitability a scheduled activity rather than an intention. Births, deaths, job changes, debts and business changes should each bring the plan back for examination.
Why the other options are wrong
- ANo insurer conditions claims on an annual review taking place.
- BIllustration expiry is not why reviews are scheduled.
- DLicensing sets education requirements, not meeting quotas.
Exam tip
A recommendation ends with a review date, not with a signature.
Common mistake
Closing a case without agreeing when it will next be looked at.
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.