LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant receives a rated offer and wants to appeal. The agent's most useful action is to:
- ATell him ratings are final, since the underwriter's decision is based on the insurer's published guidelines and cannot be revisited
- Find out the basis, gather clarifying evidence, and ask the underwriter to reconsider
- CAlter the application to remove the information that led to the rating, so the insurer can reconsider on a clean file
- DAdvise him to apply elsewhere without mentioning the condition, since another insurer may not ask the same questions
Correct answer: B) Find out the basis, gather clarifying evidence, and ask the underwriter to reconsider
Underwriting guidelines differ between insurers, and ratings can be revisited with better evidence. Advocating for the client within the rules is part of the agent's job; altering or falsifying applications is fraud.
Why the other options are wrong
- ARatings can be appealed or re-underwritten.
- CAltering an application is fraud.
- DAdvising misrepresentation is a serious breach.
Exam tip
Ratings: understand the reason, add evidence, reconsider or shop — never conceal.
Common mistake
Accepting a rating without asking what drove it.
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.