LLQP Life Insurance · Component 3.1 · 25% of the exam
Which of the following is the best example of 'field underwriting' by an agent?
- AOrdering an MRI for an applicant who mentions occasional headaches, so the underwriter has a complete picture
- Asking every question as worded, probing incomplete answers, recording replies accurately and noting observations
- CSetting the premium for the applicant based on the agent's assessment of their health and lifestyle
- DDeciding whether to approve the application before sending it to the insurer, so declined cases are not submitted
Correct answer: B) Asking every question as worded, probing incomplete answers, recording replies accurately and noting observations
The agent is the first line of underwriting: completing the application fully and honestly and reporting what the underwriter cannot see. The decision itself belongs to the insurer.
Why the other options are wrong
- AMedical requirements are ordered by the underwriter.
- CPremiums are set by the insurer's class assignment.
- DThe underwriter decides, not the agent.
Exam tip
Field underwriting = complete, accurate application + honest agent's report.
Common mistake
Paraphrasing or skipping application questions to save time.
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.