LLQP Life Insurance · Component 4.2 · 10% of the exam
After a death benefit is paid, the surviving spouse's own life insurance needs:
- ADisappear, since the survivor now has the proceeds and no longer has anyone depending on their income
- BMust be met by the same insurer, since the survivor has an existing relationship with that company
- CAre unchanged, since the survivor's own coverage was assessed separately when it was first purchased
- Should be reassessed, since dependants, income and the estate have changed
Correct answer: D) Should be reassessed, since dependants, income and the estate have changed
The claim closes one policy and opens a new needs analysis. The survivor may now be the sole earner, have new liquidity, and need to revisit beneficiaries. Ongoing service means following the family, not just the file.
Why the other options are wrong
- ANeeds do not disappear; they change.
- BThere is no requirement to use the same insurer.
- CThe survivor's circumstances have changed materially.
Exam tip
A claim reopens the needs analysis for the survivor: new income picture, new dependants, new liquidity, new beneficiaries.
Common mistake
Closing the file when the claim is paid.
What this tests
CISRO competency component 4.2 — 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.