LLQP Ethics & Professional Practice · Component 1.2 · 60% of the exam
The 'personal representative' (executor or administrator) of a deceased owner:
- Steps into the owner's rights on other lives and claims estate proceeds, but not named-beneficiary proceeds
- BOwns all of the deceased's policies personally, since the representative takes title to the estate's assets
- CBecomes the beneficiary of every policy the deceased owned, whatever the designation says
- DCan change named beneficiaries after death, since the representative exercises all of the owner's rights under the contract
Correct answer: A) Steps into the owner's rights on other lives and claims estate proceeds, but not named-beneficiary proceeds
Understanding what passes to the estate versus directly to beneficiaries is central to estate outcomes.
Why the other options are wrong
- BThe representative acts for the estate, not personally.
- COnly if the estate is the beneficiary.
- DDesignations are fixed at death.
Exam tip
Estate gets policies the deceased owned on others; named beneficiaries get proceeds directly.
Common mistake
Executor attempting to redirect proceeds from a named beneficiary.
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.