LLQP Life Insurance · Component 3.3 · 25% of the exam
The effective date of a life insurance policy is generally:
- AThe beneficiary's birthday nearest to the date of issue, since the insurer aligns the policy year with the beneficiary
- The policy date in the contract, once delivered and the first premium paid or as a TIA provides, subject to good health
- CThe date the client first met the agent, since the agent's notes from that meeting form part of the application
- DThe date the insurer received the application, since the insurer's obligation begins when it takes the offer into its system
Correct answer: B) The policy date in the contract, once delivered and the first premium paid or as a TIA provides, subject to good health
The contract states its policy date; coverage is in force when the conditions of delivery are met. A TIA may provide earlier limited coverage. Knowing the effective date matters for contestability and suicide periods.
Why the other options are wrong
- AThe beneficiary's birthday is irrelevant.
- CFirst contact has no contractual effect.
- DReceipt of the application does not create coverage absent a TIA.
Exam tip
Effective date = policy date once delivery conditions are met. Contestability runs from it.
Common mistake
Telling a client coverage started when they signed the application.
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:
- 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?
- A client's application shows the beneficiary as 'my wife' without a name. The best implementation practice is to:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.