LLQP Ethics & Professional Practice · Component 1.3 · 60% of the exam
A group life insurance certificate holder whose employment ends generally has:
- A conversion right to an individual policy without evidence within a set period, up to a stated amount
- BA refund of the premiums deducted from pay during employment, since the coverage was never used
- CNo rights at all, since group coverage is the employer's contract and ends the moment employment ends
- DAutomatic continuation of the group coverage at the same rate, paid directly to the insurer by the former employee
Correct answer: A) A conversion right to an individual policy without evidence within a set period, up to a stated amount
Conversion privileges are statutory protections for departing group members; the deadline is strict.
Why the other options are wrong
- BGroup premiums are not refunded on termination; the conversion right is the protection.
- CConversion rights exist by statute.
- DGroup coverage ends with employment.
Exam tip
Group termination: 31-day conversion right, no evidence, amount limits.
Common mistake
Missing the conversion deadline.
What this tests
CISRO competency component 1.3 — Integrate into practice the legal aspects of insurance and annuity contracts — which is weighted at 60% of the Ethics & Professional Practice module. Written against the published curriculum.
More from component 1
- An 'assignee' of a life insurance policy is:
- A corporation as policyowner and beneficiary of a policy on a key employee:
- A 'trustee' named to receive proceeds on behalf of a beneficiary:
- The 'automatic premium loan' (APL) provision:
- A life insurance contract 'matures' when:
- The 'assignment' provision typically states that:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.