LLQP Life Insurance · Component 3.2 · 25% of the exam
A client has just left employment to work for himself and has lost his group coverage. The recommendation should recognize that:
- Agroup coverage can be reinstated by the former employer on request
- Bthe client should wait for a year of business results before taking any coverage
- the household lost coverage at a time when its income is also less certain
- Dself-employed clients have no need for life insurance until the business is profitable
Correct answer: C) the household lost coverage at a time when its income is also less certain
Losing group coverage removes the safety net at the moment the family's income becomes least predictable. Any conversion right from the former plan should be checked immediately, since the window is short.
Why the other options are wrong
- AA former employer cannot reinstate coverage after employment ends.
- BDelay leaves the family uncovered and risks a change in health.
- DThe need is greatest when income is least certain.
Exam tip
Leaving employment equals a coverage gap and a short conversion window.
Common mistake
Treating a career change as a reason to postpone coverage.
What this tests
CISRO competency component 3.2 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Life Insurance module. Written against the published curriculum.
More from component 3
- At policy delivery, the agent should obtain:
- The effective date of a life insurance policy is generally:
- A client's application is approved but he has not paid the first premium when the policy is delivered. The agent should:
- A pre-authorized debit form is part of implementation because:
- During implementation, the agent learns the client wants the policy owned by her corporation instead of personally, as first applied for. The correct step is:
- Which of the following is a legitimate reason an insurer might refuse to issue a policy even after favourable underwriting?
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.