LLQP Ethics & Professional Practice · Component 1.6 · 60% of the exam
'Payment into court' by an insurer occurs when:
- AThe claimant is unknown or claims conflict, and the insurer prefers to wait for the estate to be settled
- Adverse claims exist, the beneficiary cannot be found, a minor has no trustee, or the insurer cannot safely pay
- CThe agent requests it, because the agent believes the designated beneficiary is not the person the client intended
- DThe insurer wants to avoid paying, since money paid into court is retained until the claimants give up
Correct answer: B) Adverse claims exist, the beneficiary cannot be found, a minor has no trustee, or the insurer cannot safely pay
Payment into court is a neutral mechanism for uncertain entitlement, not a denial.
Why the other options are wrong
- AThe insurer pays into court to be discharged, not to wait for the estate.
- CThe insurer decides whether to pay into court; the agent has no say.
- DThe money is paid; only the recipient is determined by the court.
Exam tip
Payment into court resolves disputed or uncertain entitlement.
Common mistake
Treating payment into court as a claim denial.
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.