LLQP Ethics & Professional Practice · Component 1.6 · 60% of the exam
When a life insured is missing and presumed dead:
- AThe agent certifies the death on the family's behalf, since the agent knows the client and the circumstances
- BThe claim is impossible, since the insurer cannot pay a death benefit without a death certificate
- CThe insurer pays after one week, since the Act presumes death after seven days without contact
- The claimant may obtain a court declaration of presumed death, which the insurer accepts as proof
Correct answer: D) The claimant may obtain a court declaration of presumed death, which the insurer accepts as proof
Presumption of death legislation provides the route when no body is found.
Why the other options are wrong
- AAgents cannot certify death.
- BA court declaration enables the claim.
- CA declaration is required; there is no seven-day rule.
Exam tip
Missing person: court declaration of presumed death.
Common mistake
Advising the family nothing can be done.
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.