LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant's request for coverage is declined. The agent should:
- Aresubmit the identical application to the same insurer the following week
- Badvise the client to omit the relevant information the next time an application is made
- Ctell the client no insurer will ever offer coverage and close the file
- explain the reason where permitted, and consider other markets or guaranteed issue options
Correct answer: D) explain the reason where permitted, and consider other markets or guaranteed issue options
Underwriting appetites differ, so another insurer may offer terms. Simplified or guaranteed issue products remain available, and the client should also be told to disclose the decline on any later application.
Why the other options are wrong
- AAn identical resubmission will produce an identical outcome.
- BAdvising non-disclosure would be serious misconduct.
- COne decline does not mean every market is closed.
Exam tip
A decline means shop the case, never reshape the answers.
Common mistake
Abandoning a client after a single insurer declines.
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.