LLQP Life Insurance · Component 4.1 · 10% of the exam
A revocable beneficiary designation is changed by:
- AThe beneficiary's written request to the insurer, since the beneficiary has an interest in who replaces them on the contract
- BAmending the will to name a different beneficiary, since the will governs the distribution of all the client's assets
- CTelling the agent verbally, who records the change in the file and notifies the insurer at the next review
- The policyholder signing the insurer's form and filing it, effective when the insurer receives it
Correct answer: D) The policyholder signing the insurer's form and filing it, effective when the insurer receives it
Designations are made and changed by written declaration filed with the insurer. A will can make a designation in some provinces, but the insurer must receive it; verbal instructions and beneficiary requests have no effect.
Why the other options are wrong
- AOnly the policyholder can change a revocable designation.
- BA will generally cannot change a designation the insurer has on file unless properly filed and permitted.
- CVerbal instructions do not change a designation.
Exam tip
Beneficiary changes: written, signed by the policyholder, filed with the insurer.
Common mistake
Believing a new will automatically updates the insurance beneficiary.
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 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:
- The primary purpose of a periodic policy review is to:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.