LLQP Life Insurance · Component 4.2 · 10% of the exam
In most provinces, once the insurer has received satisfactory proof of claim, it is required to pay the death benefit:
- AImmediately on the day of death, since the insurer is notified by the province's vital statistics office
- Within the period set by provincial insurance legislation, after which interest may be payable to the claimant
- CWithin five years, which is the limitation period for actions on a life insurance contract
- DOnly after probate has been granted, since the insurer must confirm the executor's authority before paying anyone under the policy
Correct answer: B) Within the period set by provincial insurance legislation, after which interest may be payable to the claimant
Insurance acts set a time limit for payment after proof of claim and provide for interest on late payment. The curriculum lists 'time requirements'. Named-beneficiary claims do not wait for probate; estate claims do.
Why the other options are wrong
- APayment is not required on the day of death; proof of claim must be received first.
- CFive years is far outside the statutory period.
- DNamed-beneficiary claims do not wait for probate.
Exam tip
Insurance acts set a payment deadline after proof of claim, with interest for late payment. Estate claims wait for letters probate; named-beneficiary claims do not.
Common mistake
Telling a named beneficiary that probate must be completed first.
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.