LLQP Life Insurance · Component 3.1 · 25% of the exam
An application is made on a child's life for a large amount while the parents hold little coverage themselves. The underwriter will likely:
- Arequire the child to undergo a full medical examination before any offer of coverage is made
- Bapprove it without comment, since coverage on children is inexpensive to provide
- Cdecline because policies may not be issued on the lives of minor children
- question the amount, since juvenile coverage is normally limited relative to the parents' own
Correct answer: D) question the amount, since juvenile coverage is normally limited relative to the parents' own
Insurers limit juvenile amounts, commonly to a proportion of the coverage on the parents, and may require siblings to be covered equally. The pattern here suggests the family's own needs have not been addressed.
Why the other options are wrong
- ARoutine juvenile applications rarely require a full examination.
- BJuvenile applications are subject to specific amount limits.
- CPolicies on children's lives are issued regularly.
Exam tip
Juvenile amounts are limited relative to the parents' own coverage.
Common mistake
Writing large juvenile coverage while the parents remain underinsured.
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.