LLQP Life Insurance · Component 3.1 · 25% of the exam
A temporary insurance agreement typically ends when:
- ANever, since the temporary agreement becomes the policy once the insurer approves the application
- BThe applicant changes their mind about the coverage, since the agreement depends on the applicant's continued intention to buy the policy applied for
- CThe agent is paid the first-year commission, which signals that the insurer has accepted the business
- The policy is issued and delivered, the insurer declines or postpones, or a maximum period elapses, whichever comes first
Correct answer: D) The policy is issued and delivered, the insurer declines or postpones, or a maximum period elapses, whichever comes first
TIAs bridge the underwriting period with limited coverage subject to conditions (truthful answers, the first premium paid, amount caps). Knowing when it ends prevents an uninsured gap between the TIA and the delivered policy.
Why the other options are wrong
- AA TIA never becomes the policy; it is replaced by it.
- BA TIA ends on stated events, not on the applicant's mood.
- CPayment of the agent is irrelevant.
Exam tip
TIA ends on issue and delivery, decline or postponement, or a maximum period. Watch the gap between TIA and delivered policy.
Common mistake
Assuming the TIA continues indefinitely while underwriting drags on.
What this tests
CISRO competency component 3.1 — 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.