LLQP Life Insurance · Component 4.2 · 10% of the exam
A beneficiary asks the agent how long a death claim usually takes. The honest answer is:
- ASame day, since the insurer's system pays automatically once the death certificate number is entered
- BSeveral years in most cases, since the insurer must wait for the estate to be settled before releasing funds
- COnly after probate in every case, since the insurer needs the court's confirmation of who is entitled to the proceeds
- Days to a few weeks after complete proof for uncontested claims; contestable or complex claims take longer
Correct answer: D) Days to a few weeks after complete proof for uncontested claims; contestable or complex claims take longer
Timelines depend on completeness of documentation and whether the claim is contestable. Named-beneficiary claims with clean paperwork are fast; estate claims and contestable claims are slower. Managing expectations avoids frustration.
Why the other options are wrong
- ASame-day payment is unrealistic.
- BYears is far outside the norm for uncontested claims.
- COnly estate claims wait for probate.
Exam tip
Fast claims come from complete documents and named beneficiaries.
Common mistake
Promising a specific payment date.
What this tests
CISRO competency component 4.2 — Provide customer service during the validity period of the coverage — which is weighted at 10% of the Life Insurance module. Written against the published curriculum.
More from component 4
- After a policy is reinstated, the contestability period:
- A revocable beneficiary designation is changed by:
- A client asks the agent to hold the beneficiary change form 'until next week' and dies in the meantime. The consequence is that:
- A client wants to reduce the face amount of her policy because her needs have fallen. The agent should note that:
- A client is unable to pay premiums temporarily on a whole life policy. Before letting it lapse, the agent should suggest:
- A client's term policy is being replaced with a new one from another insurer because it is cheaper and he remains healthy. To protect the client, the agent should ensure that:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.