LLQP Ethics & Professional Practice · Component 1.6 · 60% of the exam
The 'proof of claim' for a maturity or endowment payment under a life policy requires:
- AA physician's statement confirming that the life insured is in good health on the maturity date
- BThe beneficiary's signature on the claim form, since the beneficiary is the person entitled to the maturity value
- CProof of death of the life insured, since a maturity benefit is paid only when the policy ends on death
- Proof that the maturity date has arrived and the owner's identity, since the benefit is payable to the owner
Correct answer: D) Proof that the maturity date has arrived and the owner's identity, since the benefit is payable to the owner
Survival benefits go to the owner; death benefits to the beneficiary.
Why the other options are wrong
- AA maturity claim needs no physician's statement.
- BThe owner is the payee, not the beneficiary.
- CIt is a survival benefit; no death is involved.
Exam tip
Maturity/endowment: paid to the owner.
Common mistake
Paying a maturity benefit to 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
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