LLQP Life Insurance · Component 1.1 · 35% of the exam
The needs-analysis process should begin with:
- ACompleting the application, so the underwriting process can begin while the analysis is finished
- BAsking the insurer for a quote, so the client knows what coverage will cost before deciding whether to proceed
- Fact-finding: gathering the client's personal and financial information
- DPresenting the product the agent prefers, so the client understands the options before answering questions
Correct answer: C) Fact-finding: gathering the client's personal and financial information
A recommendation can only be as good as the facts behind it. The curriculum's first component — 35% of the exam — is assessing the client's situation before any product is discussed.
Why the other options are wrong
- AThe application comes after the recommendation is accepted.
- BA quote is meaningless until the amount and type of coverage are established.
- DPresenting a product first inverts the process.
Exam tip
The exam follows the curriculum's order: assess needs, analyze products, implement, service. Fact-finding is always first.
Common mistake
Jumping to product selection before the client's situation is documented.
What this tests
CISRO competency component 1.1 — Assess the client's needs and situation — which is weighted at 35% of the Life Insurance module. Written against the published curriculum.
More from component 1
- A client's existing policies were all sold by another agent who has left the business. The reviewing agent should:
- A client supports an adult child with a permanent disability who will never be self-sufficient. In the needs analysis this is:
- A self-employed client's income fluctuates widely year to year. When determining the income to replace, the agent should:
- A 58-year-old client plans to retire at 65 and has a pension that will pay a survivor benefit. How does time to retirement affect the life insurance need?
- Which of the following is a capital expense arising at death, rather than an ongoing income need?
- A client is the sole income earner in a household with a stay-at-home spouse and two young children. The greatest risk that life insurance on the client addresses is:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.