LLQP Life Insurance · Component 3.1 · 25% of the exam
An inspection report ordered by an underwriter typically:
- Verifies identity, occupation, finances and lifestyle through interviews or database checks
- BIs done by the agent, who visits the applicant's home and workplace and reports the observations to the underwriter in writing
- CReplaces the medical exam for applicants over 60, since an inspection of lifestyle predicts mortality better than tests
- DInspects the applicant's home for hazards such as pools and stairs that increase the risk of accidental death
Correct answer: A) Verifies identity, occupation, finances and lifestyle through interviews or database checks
Inspection (or consumer) reports are used on large amounts or where the underwriter needs corroboration of non-medical facts. The applicant consents to them on the application.
Why the other options are wrong
- BIndependent services conduct it.
- CIt complements, not replaces, medical evidence.
- DIt is not a property inspection.
Exam tip
Inspection reports verify non-medical facts on large cases; the application's consent covers them.
Common mistake
Failing to warn a large-case client that third parties may be contacted.
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.