LLQP Life Insurance · Component 3.2 · 25% of the exam
The purpose of the 'characteristics of the recommendation' listed in the curriculum — product, amount, term, premium, riders, beneficiaries, exclusions, clauses — is to ensure that:
- AThe insurer can raise premiums, since a complete recommendation shows the insurer what the client has agreed to pay
- BThe agent earns the maximum commission, since each element of the recommendation generates a separate compensation
- The client can evaluate and later verify exactly what was recommended, and the file shows it was complete and specific
- DThe application can be skipped, since a complete recommendation contains everything the insurer needs to issue the policy
Correct answer: C) The client can evaluate and later verify exactly what was recommended, and the file shows it was complete and specific
A recommendation that is specific on every element is one the client can understand and the regulator can audit. Vagueness is where complaints come from.
Why the other options are wrong
- APremiums are set by contract, not by the recommendation's format.
- BCompleteness serves the client, not commission.
- DThe application is still required.
Exam tip
Complete recommendation = specific on every element. Vague = risky.
Common mistake
Recommending 'some life insurance' without specifying amount, type and term.
What this tests
CISRO competency component 3.2 — 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.