LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant has lived abroad for most of the last decade and medical records are hard to obtain. The underwriter is likely to:
- Aaccept the applicant's own account of his medical history without further evidence
- Bdecline all applicants who have spent significant time outside Canada
- require additional evidence or limit the amount until a reliable history is established
- Dapply a permanent flat extra premium for every year the applicant has spent living abroad
Correct answer: C) require additional evidence or limit the amount until a reliable history is established
Underwriting depends on verifiable information. Where records cannot be obtained, insurers often ask for current testing, limit the amount offered or ask the applicant to wait until a Canadian history exists.
Why the other options are wrong
- ASelf-reported history alone is not sufficient evidence.
- BTime abroad does not automatically disqualify an applicant.
- DA per-year extra premium is not how residence is handled.
Exam tip
Unverifiable history usually means more evidence or a smaller amount.
Common mistake
Promising a newcomer the same outcome as a long-resident applicant.
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.