LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant travels frequently to regions the insurer considers high-risk. The underwriter is most likely to:
- ADecline automatically, since travel to high-risk regions is an uninsurable hazard under every insurer's guidelines
- BRequire proof of Canadian citizenship, since only citizens can be insured for travel outside the country
- Ask a travel questionnaire and, depending on destinations and duration, issue standard, rate, exclude or postpone
- DTreat the travel as irrelevant, since the policy covers death anywhere in the world regardless of destination
Correct answer: C) Ask a travel questionnaire and, depending on destinations and duration, issue standard, rate, exclude or postpone
Travel and residence are underwriting factors because of regional mortality, political risk and access to care. Outcomes range from standard issue to postponement until travel ends.
Why the other options are wrong
- AAutomatic decline is not the usual outcome.
- BCitizenship is not the issue; residence and travel are.
- DTravel questions are standard on applications.
Exam tip
Answer travel questions accurately; undisclosed foreign travel can be a material misrepresentation.
Common mistake
Leaving travel questions blank because the client 'only goes for a few weeks'.
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.