LLQP Ethics & Professional Practice · Component 1.6 · 60% of the exam
The 'limitation period' for suing an insurer on a life insurance claim:
- AIs unlimited, since a beneficiary's right to the proceeds cannot be lost through the passage of time
- BIs 30 days from the denial, which is the same period the insurer has to pay a claim once proof is received
- Runs from denial or the date the claim should have been paid, for the statutory period; missing it bars the claim
- DStarts at policy issue, so a claim on an old policy may be barred before the life insured has even died or the beneficiary has claimed
Correct answer: C) Runs from denial or the date the claim should have been paid, for the statutory period; missing it bars the claim
Agents should alert claimants to limitation periods when a claim is denied.
Why the other options are wrong
- ALimitation periods apply to insurance claims.
- BThe limitation period is far longer than 30 days.
- DIt runs from denial or accrual, not issue.
Exam tip
Limitation runs from denial; act promptly.
Common mistake
Letting informal negotiations run past the limitation period.
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.