LLQP Life Insurance · Component 4.1 · 10% of the exam
A client moves and the insurer's notices are returned undelivered. The main risk is that:
- Athe insurer will cancel the contract for failure to notify a change of address
- Bthe beneficiary designation lapses until the new address has been recorded
- lapse and other notices never reach the client, so coverage can be lost unknowingly
- Dthe policy becomes void entirely because the address recorded on the contract is now inaccurate
Correct answer: C) lapse and other notices never reach the client, so coverage can be lost unknowingly
Premium reminders, lapse notices and anniversary statements all depend on a current address. Keeping contact details up to date is one of the simplest and most valuable services an agent provides.
Why the other options are wrong
- AInsurers do not cancel policies for an unreported address change.
- BDesignations are unaffected by an address change.
- DAn out-of-date address does not void a contract.
Exam tip
A stale address is how in-force policies quietly lapse.
Common mistake
Treating contact details as administrative rather than protective.
What this tests
CISRO competency component 4.1 — 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.