LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant's build (height and weight) is used in underwriting because:
- Build outside the insurer's table ranges correlates with higher mortality and may lead to a rating
- BIt is required by FINTRAC as part of the identity verification the insurer must complete before issue
- CInsurers prefer tall applicants, since height is associated with better health outcomes in the actuarial tables
- DIt sets the death benefit, since larger applicants require more coverage to protect their families
Correct answer: A) Build outside the insurer's table ranges correlates with higher mortality and may lead to a rating
Build tables are a standard underwriting tool. Significant overweight or underweight affects the class and can be combined with blood pressure and lab results in the decision.
Why the other options are wrong
- BFINTRAC concerns money laundering.
- CHeight alone is not a preference.
- DBuild does not affect the amount of coverage.
Exam tip
Build is a rating factor; measurements should be accurate on the application.
Common mistake
Rounding a client's weight down on the application.
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.