LLQP Life Insurance · Component 3.3 · 25% of the exam
An insurer issues a policy with an amendment the client must sign at delivery. If the client refuses to sign, the agent should:
- Adeliver the policy anyway and note the refusal in the file for the record
- Bhold on to the policy until the client changes his mind at some point in the future
- Csign the amendment on the client's behalf to complete the transaction
- return the policy to the insurer, since the amended terms were not accepted
Correct answer: D) return the policy to the insurer, since the amended terms were not accepted
An amended policy is a counter-offer that only takes effect on acceptance. Without the signature there is no agreement to those terms, and the agent should explain the position and return the contract.
Why the other options are wrong
- ADelivering without acceptance leaves the contract's status in doubt.
- BHolding the contract indefinitely resolves nothing.
- CSigning for a client is forgery in any circumstances.
Exam tip
No signature on the amendment means no acceptance of those terms.
Common mistake
Leaving an unsigned amended policy with the client.
What this tests
CISRO competency component 3.3 — 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.