LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant's blood pressure is well controlled on medication. The most likely underwriting outcome is:
- Aa permanent flat extra premium for each year the medication continues
- Ba decline, since any ongoing medication indicates an uninsurable condition
- standard rates, though the best preferred class may not be available
- Dthe best preferred class, because the condition is under control
Correct answer: C) standard rates, though the best preferred class may not be available
Controlled hypertension with good readings is commonly accepted at standard rates. Preferred classes usually require readings within tighter limits and sometimes no medication at all.
Why the other options are wrong
- AFlat extras are used for specific hazards, not routine medication.
- BControlled conditions are routinely insured.
- DPreferred criteria are generally stricter than standard ones.
Exam tip
Controlled conditions reach standard; preferred needs tighter criteria.
Common mistake
Quoting preferred rates before the underwriting class is known.
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.