LLQP Ethics & Professional Practice · Component 1.5 · 60% of the exam
The agent's best practice at every review regarding beneficiaries is to:
- AAvoid raising beneficiaries, since the subject is sensitive and the client will mention any change they want
- Confirm designations against the client's wishes and life changes, check contingents and trustees, and file changes
- CRecommend naming the estate on every contract, so that the will governs everything in one place
- DUpdate designations to reflect what the agent knows about the family, without waiting for the client's instruction or signature
Correct answer: B) Confirm designations against the client's wishes and life changes, check contingents and trustees, and file changes
Beneficiary review prevents the most common and painful estate errors.
Why the other options are wrong
- ABeneficiaries are a core review item.
- CThe estate is usually the worst choice.
- DChanges are made only on the owner's instruction.
Exam tip
Review beneficiaries at every life event and annual review.
Common mistake
Discovering a deceased or ex-spouse beneficiary at claim time.
What this tests
CISRO competency component 1.5 — 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.