Life License Qualification Program (LLQP) Practice Exam

Which insurance document summary must be provided to a potential policyholder?

1. Preamble

2. Policy draft

3. Buyer's Guide and Policy Summary

4. Insurer profile

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

The correct answer is the Buyer's Guide and Policy Summary. This document is essential as it provides potential policyholders with important information regarding the insurance product, including the key features, benefits, limitations, and exclusions. It serves as a resource to help consumers understand their options and the implications of their choices, promoting informed decision-making. The Buyer's Guide typically contains generic information about various types of insurance products, while the Policy Summary outlines specific details about the policy being considered. Together, they ensure that consumers have a comprehensive overview of what they are purchasing, which is crucial for responsible financial planning and risk management. Other choices do not fulfill the requirement of providing a potential policyholder with critical, consumer-friendly insights. For example, the Preamble is usually part of policy documents that provide introductory or explanatory information but may not summarize specific policy features effectively. A policy draft is an early version of the insurance policy that may still be subject to changes and not intended for consumer presentation. The insurer profile typically includes information about the insurer's background, financial strength, and overall reputation but lacks the specific details necessary for a potential policyholder when making a purchase decision.