LLQP Accident & Sickness · Component 2.1 · 30% of the exam
The 'conversion privilege' for group health coverage allows a terminating employee to:
- ATransfer the group plan to a new employer, who then continues the same coverage at the same rates
- BConvert the health coverage into a disability policy that replaces the income lost with the job
- Convert to an individual health plan within a set period without evidence, with reduced benefits
- DKeep the group plan indefinitely by paying the full premium directly to the insurer each month
Correct answer: C) Convert to an individual health plan within a set period without evidence, with reduced benefits
Conversion protects employees leaving a group with health conditions. The converted plan is typically less generous. Group LTD rarely offers conversion.
Why the other options are wrong
- APlans are not transferable between employers.
- BConversion is like-for-like: health to health.
- DGroup coverage ends with employment; only conversion is available.
Exam tip
Conversion: time-limited, no evidence, reduced benefits, higher cost. Rare for LTD.
Common mistake
Assuming group LTD can be converted like group life.
What this tests
CISRO competency component 2.1 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Accident & Sickness module. Written against the published curriculum.
More from component 2
- A group benefits booklet lists AD&D coverage alongside life and LTD. The AD&D benefit pays:
- A hospital indemnity (hospital cash) policy pays:
- Employment Insurance sickness benefits are available to:
- Which government program coordinates with an individual DI policy through a possible offset AND also affects the definition of insurable income?
- A group plan's 'eligibility waiting period' (probationary period) is:
- A CI policy that is 'convertible' allows the insured to:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.