LLQP Life Insurance · Component 4.2 · 10% of the exam
A beneficiary designation was changed a few weeks before the insured's death, and the previous beneficiary objects. The agent should:
- Awithhold the later change form so the insurer relies on its existing records
- Btell the previous beneficiary that the earlier designation still governs the claim
- Cdecide which designation should apply based on the agent's knowledge of the client
- provide the insurer with the factual record and leave entitlement to be determined
Correct answer: D) provide the insurer with the factual record and leave entitlement to be determined
Entitlement is for the insurer or a court to determine, not the agent. Supplying accurate records, including when instructions were given and received, is the agent's proper contribution.
Why the other options are wrong
- AWithholding a document would be a serious breach.
- BA later valid designation generally displaces an earlier one.
- CAn agent has no authority to decide entitlement between claimants.
Exam tip
Supply the facts; entitlement is decided by the insurer or a court.
Common mistake
Expressing a view on who should receive disputed proceeds.
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.