LLQP Life Insurance · Component 3.1 · 25% of the exam
Why might an underwriter request a motor vehicle report (MVR)?
- Because a driving record with impaired-driving convictions or many violations indicates elevated mortality risk
- BTo confirm the applicant's address, since the licence shows where the applicant currently lives
- CTo calculate the death benefit, since the insurer must know how far the applicant drives each year
- DTo verify the applicant's income, since a commercial licence indicates the applicant's occupation and likely level of earnings
Correct answer: A) Because a driving record with impaired-driving convictions or many violations indicates elevated mortality risk
Driving behaviour correlates with accidental death. An MVR is routine for younger applicants and larger amounts; serious infractions can lead to a rating or postponement.
Why the other options are wrong
- BAddress confirmation is not the purpose of an MVR.
- CDriving records do not affect the death benefit.
- DIncome is verified by financial documents, not an MVR.
Exam tip
Driving record correlates with accidental death; impaired-driving convictions can rate or postpone an application.
Common mistake
Overlooking the driving-record questions when completing the application.
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.