LLQP Ethics & Professional Practice · Component 1.6 · 60% of the exam
A beneficiary believes the settlement the insurer has calculated is too low. The agent should:
- Anegotiate an increase with the insurer's claims department on the beneficiary's behalf
- Btell her the insurer's calculation is final and cannot be reviewed by anyone
- Crecommend she accept the amount to avoid the cost and delay of a dispute
- help her obtain the calculation in writing and explain the complaints escalation route
Correct answer: D) help her obtain the calculation in writing and explain the complaints escalation route
The first step is to see how the amount was calculated, since loans, dividends and unpaid premiums all affect it. If it still looks wrong, the internal complaints officer and then the ombudservice are the proper routes.
Why the other options are wrong
- AAn agent should not act as negotiator in a claim dispute.
- BCalculations can be reviewed through the complaints process.
- CUrging acceptance without understanding the calculation fails the client.
Exam tip
Get the calculation in writing before deciding whether to escalate.
Common mistake
Advising a beneficiary to accept a figure nobody has explained.
What this tests
CISRO competency component 1.6 — Integrate into practice the legal aspects of insurance and annuity contracts — which is weighted at 60% of the Ethics & Professional Practice module. Written against the published curriculum.
More from component 1
- An 'assignee' of a life insurance policy is:
- A corporation as policyowner and beneficiary of a policy on a key employee:
- A 'trustee' named to receive proceeds on behalf of a beneficiary:
- The 'automatic premium loan' (APL) provision:
- A life insurance contract 'matures' when:
- The 'assignment' provision typically states that:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.