LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant's answers on the medical questionnaire conflict with information in the APS. The underwriter will most likely:
- Seek clarification from the applicant, the physician or tests, since the discrepancy may indicate non-disclosure
- BIssue the policy at preferred rates, since the physician's file shows the applicant was more careful than the answers suggest
- CIgnore the APS, since the applicant's own signed answers are the only statements that form part of the contract
- DRefund the premium without comment and close the file, since the insurer cannot issue on inconsistent information
Correct answer: A) Seek clarification from the applicant, the physician or tests, since the discrepancy may indicate non-disclosure
Discrepancies are investigated. A benign explanation resolves it; an omission may lead to a rating, decline or, if the policy were issued, later contestability. The agent can help by preparing the client to answer thoroughly.
Why the other options are wrong
- BA discrepancy does not lead to a better class.
- CThe APS is authoritative medical evidence.
- DRefund is not the response to a discrepancy.
Exam tip
Underwriters reconcile every source. Prepare clients to disclose fully so the APS holds no surprises.
Common mistake
Assuming minor conditions in the doctor's file will not surface.
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.