LLQP Life Insurance · Component 3.3 · 25% of the exam
A signed illustration is required with many permanent insurance applications because:
- AIt guarantees the values shown, since the insurer cannot pay less than what the client signed for
- It documents that the client saw the projections, understood what is guaranteed, and received the disclosures
- CIt sets the premium for the policy, since the insurer prices the contract on the illustrated assumptions
- DIt replaces the policy as the contract, so the client need not read the policy document at delivery or keep it on file
Correct answer: B) It documents that the client saw the projections, understood what is guaranteed, and received the disclosures
Signed illustrations protect both parties: the client acknowledges the assumptions, and the agent and insurer have evidence of what was shown. It is listed in the curriculum's implementation process alongside the application, interim insurance, underwriting and acceptance.
Why the other options are wrong
- AA signed illustration does not guarantee values.
- CIt does not set the premium; the contract does.
- DIt does not replace the policy.
Exam tip
Signed illustrations document what the client was shown and what is and is not guaranteed — protection for both sides.
Common mistake
Submitting a permanent application without the signed illustration the insurer requires.
What this tests
CISRO competency component 3.3 — 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.