LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant has a history of depression, treated successfully and stable for several years. The likely underwriting outcome is:
- Aa permanent exclusion for any claim connected to mental health
- Ban automatic decline, since any mental health history is uninsurable
- Capproval only if the applicant agrees to stop taking the medication she has been prescribed
- an assessment of severity, treatment and stability, which may produce standard terms
Correct answer: D) an assessment of severity, treatment and stability, which may produce standard terms
Underwriters look at diagnosis, treatment, hospitalizations, time since the last episode and current functioning. A well-managed history with a long stable period is frequently accepted at standard or lightly rated terms.
Why the other options are wrong
- ALife insurance does not generally exclude by cause in this way.
- BMental health history is underwritten, not automatically declined.
- CStopping treatment would worsen the risk, not improve the offer.
Exam tip
Stability and treatment compliance improve the offer, not their absence.
Common mistake
Discouraging a client from applying because of a treated condition.
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.