LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent's obligation when a client dies and the agent is aware of a policy the family does not know about is to:
- AClaim the policy personally, since the agent's knowledge of the coverage gives the agent an interest in the proceeds
- Inform the insurer of the death and, within privacy rules, help the beneficiary or estate learn of and claim it
- CWait to be contacted by the family, since raising the policy uninvited could be seen as soliciting business
- DSay nothing, since the family's ignorance of the policy is not the agent's responsibility to correct
Correct answer: B) Inform the insurer of the death and, within privacy rules, help the beneficiary or estate learn of and claim it
Service to beneficiaries includes ensuring known policies are claimed.
Why the other options are wrong
- AThe agent may never claim a client's policy.
- CProactive service is expected.
- DSaying nothing defeats the purpose of the coverage.
Exam tip
Ensure known policies are claimed.
Common mistake
Letting a policy lapse unclaimed after death.
What this tests
CISRO competency component 2.2 — Integrate into practice the rules governing the activities of life insurance agents — which is weighted at 40% of the Ethics & Professional Practice module. Written against the published curriculum.
More from component 2
- A prospective client wants to confirm that an agent is properly licensed before meeting him. She should:
- A dual-licensed agent's mutual fund business is reviewed following a client complaint. The review will be conducted by:
- Assuris coverage applies to:
- OLHI's services are available to:
- Complaints about an agent's conduct (as opposed to an insurer's claim decision) should be directed to:
- The best summary of an agent's ethical obligations is to:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.