LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant's father and brother both died of heart disease before 55. In underwriting this is:
- Family history, a recognized rating factor that may lead to a higher class even for a healthy applicant
- BConsidered only for disability insurance, since heart disease affects the ability to work more than mortality
- CIrrelevant, since the applicant is personally healthy and underwriting looks only at the applicant's own record
- DGrounds for automatic decline, since two early cardiac deaths in the family indicate a hereditary condition
Correct answer: A) Family history, a recognized rating factor that may lead to a higher class even for a healthy applicant
Family history of cardiovascular disease, cancer or diabetes at early ages is a statistically significant predictor and appears on every application. It rarely causes a decline alone, but it can cost a preferred class.
Why the other options are wrong
- BFamily history is a life insurance rating factor as much as a disability one.
- CFamily history is relevant even for a healthy applicant.
- DFamily history rarely causes a decline alone.
Exam tip
Early cardiovascular disease, cancer or diabetes in parents or siblings can cost a preferred class. Disclose it fully.
Common mistake
Omitting family history because the applicant is personally healthy.
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.