LLQP Life Insurance · Component 3.1 · 25% of the exam
Backdating a policy to 'save age' means:
- ADelaying the effective date until the applicant's next birthday, so the premium is calculated at the older age and the coverage costs more
- BIssuing the policy with a false birth date, so the applicant is treated as younger than they actually are
- CIssuing the policy without underwriting, since the applicant's age qualifies them for the insurer's simplified process
- Setting the policy date a permitted number of months earlier so the premium reflects a younger age
Correct answer: D) Setting the policy date a permitted number of months earlier so the premium reflects a younger age
Backdating within the insurer's limit lowers the premium class by age, in exchange for paying premiums from the earlier date. All contract dates run from the policy date. It is legitimate; falsifying the birth date is not.
Why the other options are wrong
- ABackdating moves the date earlier, not later.
- BThe birth date is never changed; the policy date is.
- CUnderwriting still occurs.
Exam tip
Backdating = earlier policy date, back premiums paid, all contract dates shift earlier.
Common mistake
Confusing backdating with misstating age.
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.