LLQP Life Insurance · Component 3.1 · 25% of the exam
Which of the following would most likely be treated as a material fact in life underwriting?
- AThe applicant's choice of car colour
- BThe applicant's current marital status
- CThe applicant's favourite sport being tennis
- A documented history of treatment for heart disease
Correct answer: D) A documented history of treatment for heart disease
Materiality means the fact would influence a reasonable insurer's decision. A cardiac history obviously does; hobbies like tennis and personal preferences do not.
Why the other options are wrong
- ACar colour is irrelevant.
- BMarital status does not affect mortality assessment.
- CTennis is not a hazardous avocation.
Exam tip
Material = would change the insurer's decision. Medical history, hazardous activities, other coverage, driving record.
Common mistake
Letting clients decide that a medical history is 'too old to matter'.
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.