LLQP Life Insurance · Component 3.3 · 25% of the exam
Several underwriting requirements are outstanding on a client's application. The agent should:
- Atell the client the coverage is in place while the requirements are being gathered
- Bsubmit a second application to another insurer so one of them completes first
- track the outstanding items, help the client complete them and keep him informed
- Dwait for the insurer to contact the client directly about anything still needed
Correct answer: C) track the outstanding items, help the client complete them and keep him informed
Files close when requirements go unanswered, and the client is left uncovered. Following up, explaining what is needed and reporting progress is a substantial part of the agent's value during underwriting.
Why the other options are wrong
- ATelling a client he is covered when he is not is a misrepresentation.
- BDuplicate applications must be disclosed and complicate the case.
- DThe agent, not the insurer, manages the relationship with the client.
Exam tip
Chase outstanding requirements; unanswered files simply close.
Common mistake
Submitting an application and waiting passively for a decision.
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.