LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant has surgery scheduled for next month. The most likely underwriting response is to:
- Aissue immediately, since the surgery has not yet taken place
- postpone until the procedure and recovery have been completed and assessed
- Cdecline outright because any planned surgery indicates a serious condition
- Dissue with an exclusion for any claim arising from that particular procedure
Correct answer: B) postpone until the procedure and recovery have been completed and assessed
The underwriter cannot assess the risk until the outcome is known. Waiting protects both parties, and the agent should explain the reason so the client does not read it as a refusal.
Why the other options are wrong
- AIssuing before a known event would price an unassessed risk.
- CA scheduled procedure is not by itself a reason to decline.
- DLife insurance rarely uses procedure-specific exclusions of that kind.
Exam tip
A known upcoming event postpones the decision until the outcome is known.
Common mistake
Encouraging a client to apply immediately before a scheduled procedure.
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.