IFSE Institute Exam LLQP Topic 4 Question 5 Discussion

Actual exam question for IFSE Institute's LLQP exam

Question #: 5
Topic #: 4

Luisa owns a balanced segregated fund currently valued at $50,000. Her mother Linda is the current revocable beneficiary of the policy. However, Luisa has been dating Benjamin for a year and would like to name him as the new beneficiary of her policy.

Which of the following statements about modifying the beneficiary designation is CORRECT?

AThe change will take effect on the date that the insurer receives the change of beneficiary form.

BSince Linda is Luisa's named beneficiary, she would need to consent to the change.

CLuisa can modify the designation anytime.

DLuisa can call the insurer's head office to notify them of the change.

Show Suggested Answer

Suggested Answer: A

Beneficiary changes in insurance contracts generally become effective once the insurer receives and processes the signed change form. This is supported by LLQP material, which specifies that changes to beneficiary designations must be documented and received by the insurer for the new designation to take effect. Since Linda is a revocable beneficiary, Luisa can make this change without requiring Linda's consent.

Option B is incorrect as revocable beneficiaries do not require consent for changes. Option C is too general, and D is incorrect because a formal written change form is typically required.

by Fernanda at Oct 19, 2024, 07:37 PM

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