LLQP Life Insurance · Component 4.2 · 10% of the exam
A claim for a death that occurred abroad is more complex mainly because:
- ABenefits are paid in the foreign currency of the country where the death occurred, at that day's exchange rate
- BThe beneficiary must travel to the country of death to obtain the documents the insurer requires
- Proof of death must meet the insurer's standards, foreign documents may need translation, and investigation takes longer
- DForeign deaths are excluded from coverage unless the client purchased a travel rider before leaving Canada for the trip in question
Correct answer: C) Proof of death must meet the insurer's standards, foreign documents may need translation, and investigation takes longer
Insurers pay for deaths anywhere unless excluded, but documentation from foreign authorities must satisfy the proof-of-death requirement. The agent can help the claimant understand what the insurer needs.
Why the other options are wrong
- ABenefits are paid in the policy's currency.
- BThe beneficiary need not travel.
- DDeaths abroad are covered unless specifically excluded.
Exam tip
Foreign deaths are paid but need documentation that satisfies the insurer's proof-of-death standard; translation and authentication add time.
Common mistake
Telling a family that a death overseas is not covered.
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.