LLQP Accident & Sickness · Component 4.1 · 10% of the exam
A group sponsor asks to terminate the plan. The agent should advise:
- AImmediate termination with no notice, since the sponsor owns the contract and may end it at will
- The notice rules, employees' conversion rights and deadlines, claims in progress, and communication duties
- CThat LTD claimants lose their benefits on termination, since the plan that paid them no longer exists
- DThat termination is impossible while any employee is receiving benefits under the plan
Correct answer: B) The notice rules, employees' conversion rights and deadlines, claims in progress, and communication duties
Group termination has contractual and human consequences. LTD claimants on approved claims typically continue with the terminating insurer.
Why the other options are wrong
- ANotice is contractual.
- CApproved LTD claims generally continue.
- DSponsors may terminate.
Exam tip
Group termination: notice, conversion rights, claims-in-progress, communication.
Common mistake
Terminating without informing employees of conversion deadlines.
What this tests
CISRO competency component 4.1 — Provide customer service during the validity period of the coverage — which is weighted at 10% of the Accident & Sickness module. Written against the published curriculum.
More from component 4
- The agent's role in the claims process is to:
- A client with a non-cancellable DI policy stops paying premiums after a dispute with the insurer about a claim. The agent should warn that:
- When a client moves to another province, the agent should:
- A client asks to reduce the waiting period on his in-force disability policy. The agent should explain that the change:
- A client's disability policy lapsed six weeks ago for non-payment. The agent should:
- A client on claim asks whether she must keep paying premiums. The accurate answer depends on:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.