Life License Qualification Program (LLQP) Practice Exam

What must the insurer provide to a prospective buyer?

1. Buyer's Guide and Policy Summary

2. A.M. Best report

3. Actuarial table

4. Copy of the application

The correct answer is: Buyer's Guide and Policy Summary

The insurer is required to provide a Buyer's Guide and Policy Summary to a prospective buyer to ensure that individuals have access to essential information before making a purchase decision regarding insurance products. The Buyer's Guide serves as a comprehensive resource that outlines the key features, benefits, and types of insurance available, thereby helping consumers to compare different options and understand what to expect from their policy. The Policy Summary complements the Buyer's Guide by offering specific details about the policy being considered, including coverage limits, premiums, and other critical components. This requirement is in place to promote transparency and informed decision-making in the insurance marketplace, ensuring that consumers are fully aware of their rights and the implications of their choice. Furthermore, providing this information fosters a sense of trust and accountability between the insurer and the prospective buyer, which is crucial in establishing a positive relationship from the outset. While the other options may provide useful information or details regarding the insurance product, they do not fulfill the specific requirement to ensure that the prospective buyer is adequately informed about the insurance offerings in a clear and structured manner.