LLQP Life Insurance · Component 3.1 · 25% of the exam
An applicant with a well-controlled chronic condition is likely to be:
- Considered on the evidence, possibly standard, possibly rated, depending on the condition and its control
- BTold to apply for group insurance only, since individual insurers do not accept chronic conditions
- CIssued a preferred rate, since a well-controlled condition shows the applicant takes care of their health
- DDeclined outright, since any chronic condition is an unacceptable risk for individual life insurance
Correct answer: A) Considered on the evidence, possibly standard, possibly rated, depending on the condition and its control
Underwriting is individual. Many controlled conditions are insurable at standard or modest ratings. The agent should collect full details (diagnosis, treatment, control) so the underwriter can make the best offer, and avoid predicting the outcome.
Why the other options are wrong
- BGroup insurance is not the only option.
- CA chronic condition rarely earns a preferred rate.
- DWell-controlled conditions are often insurable.
Exam tip
Underwriting is individual: collect full details of diagnosis, treatment and control, and let the underwriter decide.
Common mistake
Predicting the underwriting outcome to the client.
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.