LLQP Segregated Funds & Annuities · Component 4.2 · 10% of the exam
A death claim where the estate is the beneficiary requires:
- AThe agent's approval of the claim, since the agent confirms the executor's identity to the insurer
- BOnly a death certificate, since the insurer can identify the executor from the deceased's file
- Proof of death plus the executor's authority, with the proceeds subject to probate fees and creditors
- DNothing beyond notice of death, since the insurer pays the estate's bank account on request once the death has been confirmed
Correct answer: C) Proof of death plus the executor's authority, with the proceeds subject to probate fees and creditors
Estate-as-beneficiary claims are slower and costlier — the situation named designations avoid.
Why the other options are wrong
- AThe insurer decides the claim, not the agent.
- BExecutor authority is required to pay an estate.
- DAn estate claim requires proof of death and executor authority.
Exam tip
Estate beneficiary: probate/executor authority, fees, creditor exposure.
Common mistake
Underestimating the delay of an estate claim.
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 Segregated Funds & Annuities module. Written against the published curriculum.
More from component 4
- A client's daughter was born last month and the client wants her added to the segregated fund designation. The agent should:
- A client wants to withdraw part of his segregated fund before maturity. The agent should explain:
- A client's segregated fund contract is approaching its maturity date. The insurer will:
- A client asks to add her adult son as a joint owner of her non-registered segregated fund contract. The agent should explain that:
- A client wants to replace the beneficiary on a contract where the current designation was made irrevocable. The agent must explain that:
- A client who has lost her job asks to pause her pre-authorized monthly contributions for six months. The agent should:
Practice the whole Segregated Funds & Annuities module
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