LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant's mother and two siblings developed a hereditary condition at a young age. The underwriter may:
- consider the family history, which the applicant must disclose, and rate accordingly
- Bignore family history entirely because only the applicant's own health matters
- Crequire a genetic test to determine whether the applicant carries the condition
- Ddecline outright, because a hereditary condition in the family is uninsurable in Canada
Correct answer: A) consider the family history, which the applicant must disclose, and rate accordingly
Family history is a legitimate underwriting factor and is asked on the application. Insurers cannot require a genetic test or its results, but the ordinary medical and family history remains part of the assessment.
Why the other options are wrong
- BFamily history is a standard and permitted underwriting factor.
- CRequiring a genetic test is prohibited by federal legislation.
- DA family history leads to assessment rather than automatic decline.
Exam tip
Family history is fair game; a genetic test result is not.
Common mistake
Confusing the genetic testing prohibition with family history questions.
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.