LLQP Life Insurance · Component 3.3 · 25% of the exam
The application for life insurance, once accepted by the insurer, becomes:
- Part of the contract, along with the policy, which is why its answers must be true and complete
- BA government record filed with the provincial regulator, which may inspect it during a market conduct review
- CThe agent's property, retained in the agent's file as evidence that the sale was completed properly
- DIrrelevant to the contract, since the policy document alone sets out the parties' rights and obligations
Correct answer: A) Part of the contract, along with the policy, which is why its answers must be true and complete
The application is incorporated into the contract. Statements in it are the basis on which the insurer accepted the risk, and the insurer can rely on them in contesting a claim within the contestability period.
Why the other options are wrong
- BIt is not a government record.
- CIt is not the agent's property.
- DThe application is part of the contract.
Exam tip
Application + policy = the contract. Answers in the application are the basis of acceptance and can be relied on in a contested claim.
Common mistake
Treating the application as a form that stops mattering once the policy is issued.
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.