LLQP Ethics & Professional Practice · Component 1.3 · 60% of the exam
An employee whose job ends is told her group life coverage stops at the end of the month. The agent should explain that she may:
- Acontinue the group coverage indefinitely by paying the premiums directly to the insurer
- Btransfer the coverage to a new employer's plan on request at any time in the future
- Cdo nothing, because group coverage simply ends with no rights of any kind arising
- convert to an individual policy without evidence of insurability within a limited window
Correct answer: D) convert to an individual policy without evidence of insurability within a limited window
Group contracts generally allow conversion to an individual policy within a short period after coverage ends, without evidence of insurability. The window is measured in days, so the agent should raise it immediately.
Why the other options are wrong
- AGroup coverage cannot usually be continued personally once employment ends.
- BCoverage does not transfer between employers' plans.
- CA conversion right does arise and is easily lost by delay.
Exam tip
Group coverage ending equals a short conversion window; act at once.
Common mistake
Letting a departing employee's conversion window expire unmentioned.
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.