LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant is a private pilot. The underwriter is most likely to:
- ATreat it as irrelevant, since private flying is a common recreational activity with a good safety record
- BDecline the application automatically, since private aviation is an uninsurable hazard
- Ask an aviation questionnaire and, depending on hours and aircraft, apply a flat extra premium or an aviation exclusion
- DRequire the applicant to stop flying as a condition of issuing the policy at standard rates, with the exclusion lifted only on written confirmation
Correct answer: C) Ask an aviation questionnaire and, depending on hours and aircraft, apply a flat extra premium or an aviation exclusion
Hazardous sports and occupations are underwritten through supplementary questionnaires. The typical outcomes are a flat extra per thousand or an exclusion for death arising from the activity. The agent should explain both possibilities in advance.
Why the other options are wrong
- AAviation is a recognized hazard and is never ignored.
- BPrivate pilots are usually insurable with a rating or exclusion.
- DInsurers do not require applicants to give up activities.
Exam tip
Hazardous activities → questionnaire → flat extra or exclusion. Tell the client in advance which to expect.
Common mistake
Failing to disclose flying or diving because 'it's only a hobby'.
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.