LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant uses cannabis occasionally and asks how it will be treated. The agent should explain that:
- Ait is never disclosed because cannabis is legally available in Canada
- Bany use automatically results in smoker rates at every Canadian insurer
- insurers ask about it, and treatment depends on frequency and method of use
- Dit is relevant only where the applicant also uses tobacco products regularly
Correct answer: C) insurers ask about it, and treatment depends on frequency and method of use
Practice varies: many insurers offer non-smoker rates for limited use, while frequent or smoked consumption may attract smoker rates. The client must answer honestly, and the agent can place the application accordingly.
Why the other options are wrong
- ALegality does not remove the disclosure requirement on the application.
- BMany insurers offer non-smoker rates for limited use.
- DCannabis use is assessed in its own right.
Exam tip
Cannabis treatment varies by insurer; disclose and place accordingly.
Common mistake
Advising a client that legal cannabis need not be disclosed.
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.