LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant asks whether genetic test results must be disclosed on a life insurance application. In Canada, the agent should be aware that:
- AGenetic results determine who may be named as beneficiary, since relatives who share a condition cannot benefit under the policy
- Federal legislation restricts insurers from requiring or using genetic test results
- CAll genetic results must always be disclosed, since they are material facts within the applicant's knowledge
- DGenetic testing is required for all applicants above a stated amount, at the insurer's expense
Correct answer: B) Federal legislation restricts insurers from requiring or using genetic test results
The Genetic Non-Discrimination Act prohibits requiring genetic tests or their results as a condition of providing goods or services, including insurance. Family history questions, which are not genetic tests, remain part of underwriting.
Why the other options are wrong
- ABeneficiaries are unrelated.
- CInsurers cannot require genetic test results.
- DInsurers cannot require testing.
Exam tip
Genetic test results: cannot be required. Family history: still asked. Know the difference.
Common mistake
Asking an applicant to produce genetic test results.
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.