LLQP Ethics & Professional Practice · Component 1.2 · 60% of the exam
The 'applicant' on a life insurance application is:
- AThe life insured in every case, since only the person whose life is covered may apply for insurance on that life
- The person applying for and owning the contract, who is responsible for the application's accuracy
- CThe beneficiary, since the beneficiary has the financial interest in seeing the policy issued
- DThe agent, who applies to the insurer on the client's behalf and signs as the applicant
Correct answer: B) The person applying for and owning the contract, who is responsible for the application's accuracy
The applicant becomes the owner. Both applicant and life insured sign, each attesting to the truth of their answers.
Why the other options are wrong
- AA third party with insurable interest can apply.
- CThe beneficiary does not apply.
- DThe agent witnesses the application; the agent is never the applicant.
Exam tip
Applicant → owner; both applicant and life insured sign.
Common mistake
Having only the life insured sign a third-party application.
What this tests
CISRO competency component 1.2 — 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.