LLQP Life Insurance · Component 3.1 · 25% of the exam
Which client-level factor generally has the largest effect on life insurance premiums at a given age?
- AOccupation, even for office workers
- BThe number of dependants in the household
- CThe applicant's province of residence
- Tobacco use and the applicant's overall health class
Correct answer: D) Tobacco use and the applicant's overall health class
Smoker versus non-smoker and the health class (preferred, standard, rated) drive the largest premium differences. Occupation matters only for hazardous jobs; dependants and province do not affect mortality pricing.
Why the other options are wrong
- AOffice occupations are standard risks.
- BDependants affect need, not risk.
- CProvince does not change the mortality rate, though premium tax varies.
Exam tip
At a given age: smoking status and health class move the premium most.
Common mistake
Assuming occupation always matters; it matters only when hazardous.
What this tests
CISRO competency component 3.1 — 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.