LLQP Life Insurance · Component 3.3 · 25% of the exam
At delivery the agent should explain the contestability and suicide provisions because:
- Athe insurer requires written confirmation that the client accepts both of these provisions
- Bthe client can have them removed from the contract on written request
- Cthey determine the premium the client will pay in the early policy years
- they limit what would be paid in the first two years, which the family should understand
Correct answer: D) they limit what would be paid in the first two years, which the family should understand
During the first two years a material misrepresentation can support rescission and a suicide claim is generally limited to a return of premiums. Clients who understand this also understand why accurate answers matter.
Why the other options are wrong
- ANo separate acceptance of the provisions is required.
- BThese are statutory and contractual provisions that cannot be removed.
- CThey limit the insurer's liability rather than setting the premium.
Exam tip
Explain both two-year provisions at delivery, in plain words.
Common mistake
Delivering a policy without mentioning the early-year limitations.
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.