LLQP Ethics & Professional Practice · Component 1.6 · 60% of the exam
A beneficiary telephones the agent the day after the insured's death. The agent's first step should be to:
- explain the process, identify what the insurer will need and notify the insurer promptly
- Bpay an advance out of the agent's own funds to help the family with their immediate expenses
- Ccomplete the claim form on the beneficiary's behalf so that nothing is delayed
- Dask the beneficiary to wait until the funeral is over before discussing any documents
Correct answer: A) explain the process, identify what the insurer will need and notify the insurer promptly
The agent's role is to guide and support rather than to adjudicate. Notifying the insurer, explaining the documents required and setting realistic expectations about timing is what helps the family most at that point.
Why the other options are wrong
- BAn agent must never advance personal funds to a client or a beneficiary.
- CThe claimant must complete and sign the claim form themselves.
- DDelay serves nobody; the family needs to know what is required.
Exam tip
Explain, notify and support; do not adjudicate or complete the form yourself.
Common mistake
Filling out a claim form for a grieving family as a kindness.
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.