LLQP Life Insurance · Component 3.1 · 25% of the exam
An agent learns during fact-finding that a client has a significant impairment. Good field underwriting means the agent should:
- Aomit the impairment entirely and let the medical evidence bring it to light in due course
- gather the details and place the case with an insurer known to view the impairment favourably
- Cdescribe the impairment in general terms so as not to prejudice the underwriter
- Dsubmit to the insurer offering the lowest published premium and await the outcome
Correct answer: B) gather the details and place the case with an insurer known to view the impairment favourably
Insurers differ markedly in how they treat particular conditions. Assembling a complete picture and choosing the right market improves the offer and avoids a decline that must then be disclosed elsewhere.
Why the other options are wrong
- AOmitting a known impairment is misrepresentation.
- CVague information slows underwriting and produces worse outcomes.
- DThe lowest published rate is irrelevant if the case is rated or declined.
Exam tip
Field underwriting means matching the case to the right insurer.
Common mistake
Shopping on published rates instead of on underwriting appetite.
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.