LLQP Life Insurance · Component 3.2 · 25% of the exam
An insurer offers a client coverage at a two-table rating. Before accepting, the agent should:
- Arecommend reducing the coverage so the rated premium becomes affordable
- Badvise the client to accept immediately, since all insurers apply identical ratings
- consider other markets and whether the evidence supports a reconsideration
- Dtell the client that a rated offer must be refused on principle
Correct answer: C) consider other markets and whether the evidence supports a reconsideration
Insurers assess the same impairment differently, and further medical evidence sometimes supports a better offer. The client should also understand that a rating may be reviewable if the condition improves.
Why the other options are wrong
- AReducing coverage should follow the need, not the rating.
- BRatings vary substantially between insurers.
- DA rated offer is often the right outcome to accept.
Exam tip
Shop a rated case and ask whether the evidence supports reconsideration.
Common mistake
Accepting the first rated offer without testing the market.
What this tests
CISRO competency component 3.2 — 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.