LLQP Life Insurance · Component 3.1 · 25% of the exam
Which of the following is a typical 'non-medical' limit in life underwriting?
- AThe maximum face amount an insurer will sell to any one applicant, whatever medical and financial evidence is provided in support
- The coverage, by age band, the insurer will issue on application questions alone
- CThe premium limit above which the insurer requires the applicant to provide financial evidence
- DThe number of beneficiaries an applicant may name without the insurer requiring a trust arrangement
Correct answer: B) The coverage, by age band, the insurer will issue on application questions alone
Non-medical limits allow quick issue for smaller amounts on younger applicants. Above them, evidence escalates. Simplified-issue products extend this concept with limited questions and no tests.
Why the other options are wrong
- AInsurers' overall maximums are far higher and involve full evidence.
- CPremium is not the basis of the limit.
- DBeneficiary count is irrelevant.
Exam tip
Non-medical limit = amount issued on questions alone; varies by age.
Common mistake
Confusing non-medical limits with guaranteed issue.
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.