LLQP Ethics & Professional Practice · Component 1.2 · 60% of the exam
A life insured who does not own the policy asks the agent for a copy of the contract and its values. The agent should:
- Aprovide everything requested, since the contract insures that person's own life
- direct the request to the owner, who holds the rights and controls the information
- Crefuse any contact, since a life insured has no standing to ask the agent anything
- Dprovide the values but withhold the beneficiary designation as a private matter
Correct answer: B) direct the request to the owner, who holds the rights and controls the information
Contract information belongs to the owner. The life insured has rights concerning personal information collected about them, but not a right to the owner's contract details, so the request goes to the owner.
Why the other options are wrong
- ABeing the life insured does not confer a right to the owner's contract information.
- CThe person may properly be directed to the owner rather than ignored.
- DPartial disclosure is still disclosure of the owner's information.
Exam tip
The owner controls contract information, even about someone else's life.
Common mistake
Releasing policy details to the life insured because the policy concerns them.
What this tests
CISRO competency component 1.2 — 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.