LLQP Life Insurance · Component 4.2 · 10% of the exam
The agent's role when a client's beneficiary calls about a death is to:
- APay the claim from the agency's funds, so the family is not kept waiting for the insurer's process
- BDecide whether the claim is valid, since the agent knows the client's history and the policy's terms
- CRefer them to a lawyer only, since a death claim is a legal matter outside the agent's role and the insurer deals only with counsel
- Explain the process, help with forms and documents, and liaise with the insurer without promising an outcome
Correct answer: D) Explain the process, help with forms and documents, and liaise with the insurer without promising an outcome
The curriculum lists assisting the executor or beneficiary with the claim form and the role of the estate's professional advisors. The agent guides; the insurer adjudicates.
Why the other options are wrong
- AThe agent does not pay claims from any funds.
- BThe agent does not adjudicate claims.
- CReferral to a lawyer is not the agent's primary role in a routine claim.
Exam tip
At a claim, the agent guides and assists; the insurer decides. Never promise the outcome.
Common mistake
Promising a beneficiary that the claim 'will definitely be 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.