LLQP Life Insurance · Component 3.3 · 25% of the exam
A client's policy was issued and delivered, but the insurer's records show the beneficiary designation form was never received. The consequence is that:
- Without a designation on file, proceeds go to the estate; the designation should be submitted
- BThe insurer chooses the beneficiary based on the family information in the application, since the designation form was never received
- CThe policy is void, since a beneficiary designation is a condition of the contract and the insurer has none on file
- DNothing, since the agent's file copy of the signed form is sufficient evidence of the client's intentions at claim
Correct answer: A) Without a designation on file, proceeds go to the estate; the designation should be submitted
Designations must be filed with the insurer to be effective. Confirming receipt is an implementation step that prevents the estate-default outcome the client never intended.
Why the other options are wrong
- BThe insurer follows the contract's default, the estate, not its own choice.
- CThe policy is valid; only the designation is missing.
- DThe agent's file is not the insurer's record.
Exam tip
Confirm the insurer has the designation on file, not just that the form was signed.
Common mistake
Assuming a signed form reached the insurer.
What this tests
CISRO competency component 3.3 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Life Insurance module. Written against the published curriculum.
More from component 3
- At policy delivery, the agent should obtain:
- The effective date of a life insurance policy is generally:
- A client's application is approved but he has not paid the first premium when the policy is delivered. The agent should:
- A pre-authorized debit form is part of implementation because:
- During implementation, the agent learns the client wants the policy owned by her corporation instead of personally, as first applied for. The correct step is:
- Which of the following is a legitimate reason an insurer might refuse to issue a policy even after favourable underwriting?
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.