LLQP Life Insurance · Component 1.1 · 35% of the exam
Which of the following is a lifestyle factor that a needs analysis records because it affects both the risk of death and the insurer's underwriting?
- AThe client's political views, since they predict how the client will react to a rating
- The client's hobby of scuba diving, which raises the risk of accidental death
- CThe client's choice of bank, since it shows how the client manages money
- DThe client's marital status, since married applicants tend to live longer
Correct answer: B) The client's hobby of scuba diving, which raises the risk of accidental death
Hazardous avocations — scuba, private flying, motor racing, mountaineering — raise mortality risk and are underwritten, sometimes with an exclusion or extra premium. Marital status matters for dependency, not for mortality.
Why the other options are wrong
- APolitical views are neither a mortality factor nor something an insurer may ask about.
- CThe choice of bank is irrelevant to mortality and to underwriting.
- DMarital status affects dependency and need, not the applicant's risk of dying.
Exam tip
Lifestyle factors that matter to underwriters are the ones that raise mortality: hazardous sports, smoking, alcohol, driving record.
Common mistake
Confusing factors that change the need (dependants) with factors that change the risk (hazards).
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.