LLQP Life Insurance · Component 3.3 · 25% of the exam
The agent's report section of an application asks about the agent's observations of the client. The agent must:
- Arecord only favourable observations so the application is not prejudiced
- complete it honestly, including anything observed that the underwriter should know
- Ccopy the answers the client gave in the health questionnaire directly into that section
- Dleave it blank, since the client's own answers are what the insurer relies upon
Correct answer: B) complete it honestly, including anything observed that the underwriter should know
The report is the agent's own statement and is relied on by the underwriter. Omitting something observed, such as apparent ill health or an inconsistency, is a misrepresentation by the agent.
Why the other options are wrong
- ASelective reporting is a form of misrepresentation.
- CThe section calls for observations, not a repetition of the answers.
- DThe insurer relies on the agent's observations as well as the client's answers.
Exam tip
The agent's report is the agent's own declaration and must be complete.
Common mistake
Treating the agent's report as an optional formality.
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.