LLQP Life Insurance · Component 3.3 · 25% of the exam
Completing the beneficiary section of an application, the agent should record:
- Athe beneficiary's own signature accepting the designation being made
- Bthe relationship alone, such as spouse or child, which the insurer can interpret
- full legal names, relationships and shares, plus a contingent beneficiary
- Donly the primary beneficiary, since contingents are added after the policy is issued
Correct answer: C) full legal names, relationships and shares, plus a contingent beneficiary
Vague designations cause disputes years later when relationships have changed. Full names, relationships, clear shares and a contingent designation remove the ambiguity while the client is available to resolve it.
Why the other options are wrong
- ABeneficiaries do not sign designations.
- BA relationship alone becomes ambiguous after a divorce or remarriage.
- DA contingent should be named at the outset, not added later.
Exam tip
Full names, clear shares, and always a contingent.
Common mistake
Writing only a relationship such as wife in the beneficiary section.
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.