LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant's occupation is 'commercial fisher'. This occupation is relevant to underwriting because:
- AFishers pay no premium tax, since the federal government exempts primary industries from the provincial taxes levied on insurance
- BIt is not relevant, since occupation is recorded only to confirm the applicant's income for financial underwriting
- CFishers are uninsurable, since the occupation is on every insurer's list of declined risks
- It carries elevated accident risk; the underwriter may rate it or add a flat extra premium
Correct answer: D) It carries elevated accident risk; the underwriter may rate it or add a flat extra premium
Hazardous occupations are underwritten through questionnaires and often priced with flat extras. Full disclosure of duties matters; 'fisher' can mean anything from an office role to deck work in winter seas.
Why the other options are wrong
- APremium tax is unrelated to occupation.
- BOccupation is a standard rating factor.
- CHazardous occupations are usually insurable with a rating.
Exam tip
For hazardous occupations, describe actual duties; the rating depends on them.
Common mistake
Recording a vague occupation title that hides the real risk.
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.