LLQP Life Insurance · Component 3.3 · 25% of the exam
An agent delivers a policy and obtains a delivery receipt. The receipt matters because it:
- Aconfirms the client has read and understood every provision of the contract
- Breplaces the need for the client to sign any amendment the insurer requires
- records the date of delivery, from which the rescission period runs
- Dtransfers ownership of the contract from the insurer to the policyholder
Correct answer: C) records the date of delivery, from which the rescission period runs
The rescission period is measured from delivery, so the date must be recorded. The receipt also evidences that the contract reached the client, which matters if a dispute arises later.
Why the other options are wrong
- AA receipt does not evidence understanding of the terms.
- BA required amendment needs its own signature.
- DOwnership arises from the contract, not from the receipt.
Exam tip
Delivery starts the rescission clock, so record the date.
Common mistake
Leaving a policy without obtaining a dated delivery receipt.
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.