LLQP Ethics & Professional Practice · Component 1.6 · 60% of the exam
A disability claimant is required to provide 'continuing proof' because:
- AThe law requires the claimant to prove the claim afresh in court each month that benefits are paid
- BThe insurer suspects the claimant personally, since continuing proof is requested only where fraud is suspected
- Benefits are payable only while disability continues, so periodic statements confirm eligibility
- DThere is no reason beyond the insurer's administrative convenience in keeping its files up to date
Correct answer: C) Benefits are payable only while disability continues, so periodic statements confirm eligibility
Ongoing entitlement must be evidenced; agents should prepare claimants for the routine.
Why the other options are wrong
- AThere is a clear contractual reason for continuing proof, not a legal one about lawsuits.
- BIt is contractual, not personal.
- DThere is a contractual reason.
Exam tip
DI: periodic proof of continuing disability.
Common mistake
Failing to return continuing-proof forms.
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.