LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant repeatedly fails to attend the paramedical examination the insurer requires. The likely result is that:
- Athe insurer issues the policy on the basis of the application alone
- the file is closed as incomplete, and a new application would be needed later
- Cthe insurer proceeds with a rating to compensate for the missing evidence
- Dthe temporary coverage continues indefinitely until the examination is completed
Correct answer: B) the file is closed as incomplete, and a new application would be needed later
Insurers close files where requirements are outstanding for too long. Any temporary agreement also ends, so the applicant is left uncovered, which the agent should make clear when following up.
Why the other options are wrong
- AThe evidence was required precisely because the application was insufficient.
- CRatings reflect assessed risk, not an absence of information.
- DTemporary coverage ends according to its own terms.
Exam tip
Outstanding requirements close files and end temporary coverage.
Common mistake
Assuming a pending file leaves the client protected indefinitely.
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.