LLQP Life Insurance · Component 1.1 · 35% of the exam
A client is acting as executor of her late father's estate. During fact-finding the agent should recognize that:
- Athe role gives her access to estate assets she may treat as her own resources
- an expected inheritance is uncertain in timing and amount and should not be relied upon
- Cthe estate's liabilities become her personal liabilities as a result of the appointment
- Dshe cannot buy life insurance while the estate remains unsettled
Correct answer: B) an expected inheritance is uncertain in timing and amount and should not be relied upon
Inheritances can be delayed, reduced by debts and taxes or divided differently than expected. The analysis should note the possibility and plan to be revisited rather than assume the money will arrive.
Why the other options are wrong
- AAn executor administers the estate and does not own its assets.
- CAn executor is not personally liable for the estate's debts.
- DActing as executor does not affect her own insurability or eligibility.
Exam tip
Expected inheritances are noted as possibilities, never counted as resources.
Common mistake
Reducing a recommendation because an inheritance is expected.
What this tests
CISRO competency component 1.1 — Assess the client's needs and situation — which is weighted at 35% of the Life Insurance module. Written against the published curriculum.
More from component 1
- A client's existing policies were all sold by another agent who has left the business. The reviewing agent should:
- A client supports an adult child with a permanent disability who will never be self-sufficient. In the needs analysis this is:
- A self-employed client's income fluctuates widely year to year. When determining the income to replace, the agent should:
- A 58-year-old client plans to retire at 65 and has a pension that will pay a survivor benefit. How does time to retirement affect the life insurance need?
- Which of the following is a capital expense arising at death, rather than an ongoing income need?
- A client is the sole income earner in a household with a stay-at-home spouse and two young children. The greatest risk that life insurance on the client addresses is:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.