LLQP Life Insurance · Component 4.1 · 10% of the exam
A client wants to change the name on his policy after marriage and update his address. The agent should:
- ACancel and reissue the policy in the new name, since the contract identifies the insured by the name at issue
- BTell him a new policy is required, since the insurer cannot amend the identity of the life insured
- Help him submit the insurer's amendment request for these minor changes, which do not require underwriting
- DCharge a fee for the amendment, since administrative changes are outside the servicing the commission covers
Correct answer: C) Help him submit the insurer's amendment request for these minor changes, which do not require underwriting
Name and address changes are administrative amendments. The curriculum distinguishes minor amendments from changes that affect the risk (increasing coverage, removing an exclusion), which require underwriting.
Why the other options are wrong
- ACancelling and reissuing would be absurd for a name change.
- BAdministrative changes do not require a new policy.
- DAdministrative amendments are not fee-bearing services.
Exam tip
Minor amendments (name, address, mode) need no underwriting; changes that increase the insurer's risk do.
Common mistake
Treating every change as if it required underwriting.
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.