LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant asks why the insurer wants to know about her alcohol consumption. The agent should explain that:
- Alcohol use above certain levels is associated with higher mortality and can lead to ratings
- BInsurers disapprove of alcohol on moral grounds and prefer to insure applicants who do not drink at all in any circumstances
- CIt is illegal to ask, so the applicant may leave the question blank without any consequence for the policy
- DIt sets the beneficiary, since an applicant who drinks heavily cannot name a spouse who also drinks
Correct answer: A) Alcohol use above certain levels is associated with higher mortality and can lead to ratings
Lifestyle questions — alcohol, drugs, driving — are mortality factors. Answering honestly protects the contract; lab tests can reveal heavy use regardless.
Why the other options are wrong
- BThe question is actuarial, not moral.
- CInsurers are entitled to ask lifestyle questions.
- DIt has nothing to do with beneficiaries.
Exam tip
Lifestyle questions are mortality questions; explain why they matter.
Common mistake
Downplaying alcohol or drug questions with the client.
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.