LLQP Life Insurance · Component 4.2 · 10% of the exam
A beneficiary complains that the insurer has held a straightforward claim for several months. The agent should explain that:
- Athe delay is the beneficiary's own responsibility for not following the matter up more often
- Bclaims are always paid within five business days of the death being reported
- legislation sets a period for payment after satisfactory proof, and interest may accrue
- Dinsurers may take as long as they consider necessary to settle any claim
Correct answer: C) legislation sets a period for payment after satisfactory proof, and interest may accrue
Once satisfactory proof of claim is received, the insurer must pay within the statutory period and interest can run. An unexplained delay should be escalated through the complaints officer and then the ombudservice.
Why the other options are wrong
- ADelay is not created by a beneficiary's failure to chase.
- BFive business days is not a realistic or legislated timeframe.
- DStatutory timelines and interest apply to the payment of claims.
Exam tip
Statutory timelines start when satisfactory proof is received.
Common mistake
Accepting an unexplained claim delay without escalating it.
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.