LLQP Life Insurance · Component 3.2 · 25% of the exam
Which recommendation element addresses 'who gets the money if the primary beneficiary has died'?
- AThe rider selection made at application
- A contingent beneficiary designation on the contract
- CThe face amount of the policy
- DThe premium mode the client has chosen
Correct answer: B) A contingent beneficiary designation on the contract
Naming contingent beneficiaries is part of a complete recommendation. Without one, the proceeds may fall into the estate, with probate and creditor exposure. It is a small step with large consequences.
Why the other options are wrong
- ARiders do not address beneficiary succession.
- CThe face amount is the how much, not the who.
- DPremium has nothing to do with succession of beneficiaries.
Exam tip
Every recommendation names primary and contingent beneficiaries.
Common mistake
Leaving the contingent beneficiary blank.
What this tests
CISRO competency component 3.2 — 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.