LLQP Life Insurance · Component 3.2 · 25% of the exam
A written recommendation should specify, at a minimum:
- AThe insurer's share price and financial ratings, so the client can judge the strength of the guarantee
- The product, amount, term, premium, recommended riders, beneficiaries, and important clauses and exclusions
- CThe agent's commission on the sale, expressed as a dollar amount and a percentage of the first-year premium
- DOnly the premium and payment frequency, since the rest of the terms are set out in the policy
Correct answer: B) The product, amount, term, premium, recommended riders, beneficiaries, and important clauses and exclusions
The curriculum lists these as the characteristics of a recommendation. A recommendation that omits beneficiaries or exclusions is incomplete and leaves the client unable to make an informed decision.
Why the other options are wrong
- AShare price is irrelevant.
- CCommission disclosure is a separate obligation, not part of the recommendation's content.
- DPremium alone is not a recommendation.
Exam tip
A complete recommendation: product, amount, term, premium, riders, beneficiaries (primary and contingent), exclusions, key clauses.
Common mistake
Leaving beneficiaries out of the written recommendation.
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.