LLQP Life Insurance · Component 4.1 · 10% of the exam
A periodic review cycle for life insurance clients is recommended because:
- ARegulators require an annual sale to each client as a condition of keeping the agent's licence in good standing with the council
- BPolicies expire every year and must be reissued, so the review is the occasion to complete the paperwork
- Needs, beneficiaries, products and tax rules change, and an unreviewed policy can quietly become unsuitable or lapse
- DPremiums must be renegotiated each year with the insurer, and the review is where the new rate is agreed
Correct answer: C) Needs, beneficiaries, products and tax rules change, and an unreviewed policy can quietly become unsuitable or lapse
The curriculum's fourth component is service during the policy's life. A review catches expiring conversions, lapsing universal life, outdated beneficiaries and new needs — the difference between a policy and a plan.
Why the other options are wrong
- ARegulators do not require annual sales.
- BPolicies do not expire annually.
- DPremiums are not renegotiated at reviews.
Exam tip
Periodic reviews catch expiring conversions, lapsing UL, outdated beneficiaries and new needs.
Common mistake
Treating the sale as the end of the relationship.
What this tests
CISRO competency component 4.1 — Provide customer service during the validity period of the coverage — which is weighted at 10% of the Life Insurance module. Written against the published curriculum.
More from component 4
- After a policy is reinstated, the contestability period:
- A revocable beneficiary designation is changed by:
- A client asks the agent to hold the beneficiary change form 'until next week' and dies in the meantime. The consequence is that:
- A client wants to reduce the face amount of her policy because her needs have fallen. The agent should note that:
- A client is unable to pay premiums temporarily on a whole life policy. Before letting it lapse, the agent should suggest:
- A client's term policy is being replaced with a new one from another insurer because it is cheaper and he remains healthy. To protect the client, the agent should ensure that:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.