LLQP Ethics & Professional Practice · Component 1.6 · 60% of the exam
An insurer asks a claimant to sign an authorization for the deceased's medical records during the contestability period. The agent should explain that:
- Athe request is improper and should be refused, because a deceased person's medical records stay confidential
- Bthe insurer may obtain the records without any authorization from the claimant
- Csigning the authorization waives the claimant's right to dispute a denial later
- the insurer may verify the application's accuracy within the contestable period, so the request is routine
Correct answer: D) the insurer may verify the application's accuracy within the contestable period, so the request is routine
A death within the contestability period allows the insurer to check the application against the medical history. Cooperating speeds the review, and the claimant retains every right to challenge a denial afterward.
Why the other options are wrong
- AThe insurer is entitled to verify the application during the contestable period.
- BAccess to medical records requires an authorization.
- CAn authorization does not surrender the right to dispute the outcome.
Exam tip
Contestable claims routinely involve a medical records review; explain, do not alarm.
Common mistake
Advising a family to refuse an authorization the insurer is entitled to seek.
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.