LLQP Life Insurance · Component 4.2 · 10% of the exam
After paying a death claim, the agent's continuing service to the family should include:
- AContacting the insurer for the commission that becomes payable when a claim on one of the agent's own policies is finally settled
- BOffering to sell the proceeds back to the beneficiary in exchange for a new policy on the beneficiary's life
- CNothing further, since the agent's obligations end once the claim has been paid to the beneficiary
- Reviewing the survivors' coverage and beneficiaries, and explaining settlement options and tax
Correct answer: D) Reviewing the survivors' coverage and beneficiaries, and explaining settlement options and tax
A claim changes the survivors' situation completely. The curriculum's service competency continues past the claim: new needs analysis for the survivor, designations, and coordination with lawyers and accountants.
Why the other options are wrong
- AClaims do not generate commission.
- BProceeds belong to the beneficiary; there is nothing to sell back.
- CThe survivors' needs have changed and deserve attention.
Exam tip
The claim is the start of the survivor's planning, not the end of the file.
Common mistake
Disappearing after 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.