LLQP Ethics & Professional Practice · Component 1.6 · 60% of the exam
After a death claim is settled, the agent's file should record:
- Aonly the amount paid, since the claim is now closed and nothing further can arise
- Bthe beneficiary's banking information so that future payments can be made quickly
- Cthe family's personal circumstances in detail, for use in later marketing to the survivors
- the notification, the documents provided, the insurer's correspondence and the outcome
Correct answer: D) the notification, the documents provided, the insurer's correspondence and the outcome
A complete record shows what the agent did and when, which matters if the settlement is questioned later. It also supports the follow-up conversation the survivors may need about their own coverage and plans.
Why the other options are wrong
- AQuestions about a settled claim can arise long afterward.
- BBanking details should not be retained by the agent after the payment.
- CPersonal information cannot be collected or kept for unrelated marketing.
Exam tip
Record what was done and when; do not keep data you have no need for.
Common mistake
Closing a claim file without recording the steps that were taken.
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.