LLQP Life Insurance · Component 3.2 · 25% of the exam
A recommendation places less coverage than the analysis calls for because of affordability. The file should record:
- Aa signed statement in which the client accepts full responsibility for the shortfall in coverage
- the calculated need, the amount placed, the reason and the plan to revisit
- Conly the amount actually placed, since that is what the client decided to buy
- Dan opinion from the agent that the client really should have purchased more coverage
Correct answer: B) the calculated need, the amount placed, the reason and the plan to revisit
A file showing only the amount placed cannot demonstrate that the shortfall was identified and discussed. Recording the gap and the review plan protects the client and the agent alike.
Why the other options are wrong
- AA waiver does not replace a record of the advice.
- CThe amount alone does not show the advice that was given.
- DA criticism of the client is not a record of the recommendation.
Exam tip
Document the gap and the plan, not just the policy placed.
Common mistake
Recording the sale without recording the shortfall discussed.
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.