LLQP Ethics & Professional Practice · Component 1.6 · 60% of the exam
Privacy at claim time requires the agent to:
- ASet privacy aside, since privacy rights end with the death of the person the information concerns
- BShare the deceased's medical file with the family, so they understand why the claim is being investigated
- Handle claim information confidentially and disclose it only to the insurer and persons the claimant authorizes
- DPost updates on the claim's progress publicly, so all interested relatives can follow it without contacting the agent
Correct answer: C) Handle claim information confidentially and disclose it only to the insurer and persons the claimant authorizes
Privacy obligations continue after the insured's death and throughout the claim; medical details flow to the insurer under the claimant's authorization, and the agent shares only what is needed with those authorized.
Why the other options are wrong
- APrivacy obligations persist after the insured's death.
- BThe agent has no authority to share the medical file.
- DPublic updates about a claim would breach privacy.
Exam tip
Claims privacy: need-to-know only.
Common mistake
Discussing a claim with relatives who are not the beneficiary.
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.