LLQP Life Insurance · Component 4.1 · 10% of the exam
The primary purpose of a periodic policy review is to:
- AIncrease premiums to reflect the client's current age, since the insurer reprices the policy at each review
- Confirm the coverage still matches needs and circumstances, and catch contract events before they cause harm
- CSatisfy the insurer's requirement that agents contact every client annually to keep the agent contract in force
- DGenerate a new sale, since the review is the natural opportunity to present products the client does not yet own
Correct answer: B) Confirm the coverage still matches needs and circumstances, and catch contract events before they cause harm
Reviews are service, not sales, though they may lead to changes. The curriculum's fourth competency is precisely this: keeping coverage appropriate through the life of the contract.
Why the other options are wrong
- AReviews do not increase premiums.
- CThe review serves the client.
- DA sale may result, but it is not the purpose.
Exam tip
Review = verify fit, catch deadlines, update designations.
Common mistake
Approaching reviews as sales calls.
What this tests
CISRO competency component 4.1 — Provide customer service during the validity period of the coverage — which is weighted at 10% of the Life Insurance module. Written against the published curriculum.
More from component 4
- After a policy is reinstated, the contestability period:
- A revocable beneficiary designation is changed by:
- A client asks the agent to hold the beneficiary change form 'until next week' and dies in the meantime. The consequence is that:
- A client wants to reduce the face amount of her policy because her needs have fallen. The agent should note that:
- A client is unable to pay premiums temporarily on a whole life policy. Before letting it lapse, the agent should suggest:
- A client's term policy is being replaced with a new one from another insurer because it is cheaper and he remains healthy. To protect the client, the agent should ensure that:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.