LLQP Ethics & Professional Practice · Component 1.6 · 60% of the exam
A family is certain a policy existed but the insurer's initial search finds nothing. The agent should:
- Aoffer to pay the family the amount they believe the policy would have provided
- Btell the family the coverage must have lapsed and close the matter at that point
- help search using the industry policy search service and any records the agent holds
- Dadvise the family to sue the insurer immediately to compel a fuller search of its files
Correct answer: C) help search using the industry policy search service and any records the agent holds
Policies can be recorded under a former name, a different address or a company since merged. An industry search service exists for this purpose, and the agent's own records may supply the policy number or the issuing company.
Why the other options are wrong
- AAn agent never pays a benefit personally in any circumstances.
- BAn initial search failing does not establish that coverage lapsed.
- DLitigation is premature before a proper search has been carried out.
Exam tip
Unfound policies are often recorded under a former name or a merged insurer.
Common mistake
Accepting a first search result as proof that no policy existed.
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.