LLQP Life Insurance · Component 3.1 · 25% of the exam
'Postponed' as an underwriting decision means:
- The insurer will not decide now, until an investigation is complete or a condition has stabilized, and invites reapplication
- BThe premium is deferred until the policy anniversary, so the client pays nothing during the first year
- CThe policy is issued with a rating that will be reviewed after a stated period if the condition improves
- DThe applicant is declined permanently, and the decision is recorded so that other insurers will also decline the same applicant
Correct answer: A) The insurer will not decide now, until an investigation is complete or a condition has stabilized, and invites reapplication
Postponement is neither acceptance nor decline. The agent should explain what would allow reconsideration (time since treatment, test results) and arrange interim coverage where possible.
Why the other options are wrong
- BIt does not defer the premium; it defers the decision.
- CIssue with a rating is a separate decision.
- DPostponed is not a decline.
Exam tip
Postponed = decision deferred pending time or evidence. Tell the client what would allow reconsideration and arrange interim coverage.
Common mistake
Telling a postponed client they were declined.
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.