LLQP Life Insurance · Component 3.1 · 25% of the exam
Which underwriting outcome is appropriate for an applicant recently diagnosed with a serious condition whose prognosis is not yet clear?
- AImmediate issue with no evidence, since the applicant's condition has already been diagnosed and is being treated
- Postponement until the condition is treated and stabilized, with a suggested reapplication date
- CPreferred issue, since an applicant who is under a specialist's care is monitored more closely than most
- DStandard issue with a two-year exclusion for the condition, after which full coverage applies automatically
Correct answer: B) Postponement until the condition is treated and stabilized, with a suggested reapplication date
When the risk cannot be assessed, underwriters postpone rather than decline. The agent should record the reason and the reapplication timeline, and consider interim options.
Why the other options are wrong
- AIssuing without evidence would be reckless.
- CPreferred is out of reach for an unresolved serious condition.
- DStandard issue requires an assessable, standard risk.
Exam tip
Unclear prognosis → postpone, not decline. Track the reapplication date.
Common mistake
Treating a postponement as the end of the road.
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.