LLQP Life Insurance · Component 3.1 · 25% of the exam
An underwriter orders a driving record on an applicant. The information is relevant because:
- Athe record shows whether the applicant can afford the premiums proposed
- a pattern of serious driving offences correlates with a higher mortality risk
- Cinsurers use it to verify the applicant's address and length of residence
- Dprovincial law requires a driving record for every life insurance application
Correct answer: B) a pattern of serious driving offences correlates with a higher mortality risk
Impaired driving convictions, licence suspensions and repeated serious offences indicate elevated risk. They can lead to a rating or a postponement until enough time has passed without further incidents.
Why the other options are wrong
- ADriving records say nothing about a client's finances.
- CAddress verification is done through other means entirely.
- DNo law requires a driving record for a life application.
Exam tip
Driving records are a mortality indicator, not an identity check.
Common mistake
Treating driving history as irrelevant to a life insurance application.
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.