LLQP Life Insurance · Component 3.3 · 25% of the exam
At application, an agent must verify the client's identity. This requirement exists because:
- anti-money-laundering legislation requires identification and record keeping
- Bthe beneficiary cannot be paid unless the agent has seen identification at application
- Cthe insurer needs a photograph for its records before issuing a policy
- Dprovincial insurance law makes identification a condition of the contract's validity
Correct answer: A) anti-money-laundering legislation requires identification and record keeping
Identification and third party determination are federal obligations, with prescribed methods and retention periods. The agent must record what was examined and when, so the file can be produced on request.
Why the other options are wrong
- BClaims are not conditional on identification at application.
- CA photograph for the insurer's records is not the purpose.
- DIdentification is a legal obligation rather than a contract condition.
Exam tip
Identification at application is a federal obligation with prescribed records.
Common mistake
Skipping identification for a client the agent has known for years.
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.