LLQP Ethics & Professional Practice · Component 1.6 · 60% of the exam
An insured disappears at sea and the family asks when a claim can be made. The agent should explain that:
- Aa claim may be submitted immediately on the basis of the family's own belief
- proof of death is required, which may mean a court declaration after a statutory period
- Cthe insurer will presume death after the policy's contestability period has expired
- Dno claim is ever possible unless a body has been recovered and then formally identified
Correct answer: B) proof of death is required, which may mean a court declaration after a statutory period
An insurer needs proof of death. Where no death certificate can be issued, legislation allows a court to declare a missing person dead after a prescribed period, and that declaration supports the claim.
Why the other options are wrong
- AA family's belief is not proof of death for the insurer's purposes.
- CContestability has nothing to do with presuming a death.
- DA court declaration can substitute where no body is recovered.
Exam tip
No death certificate means a court declaration after the statutory period.
Common mistake
Telling a family no claim is possible without a recovered body.
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.