LLQP Life Insurance · Component 1.2 · 35% of the exam
A client is beginning an extended unpaid leave of absence. Regarding his group life coverage the agent should:
- Aassume it continues unchanged, since he remains an employee throughout the leave
- Btell him the employer is legally required to maintain the coverage during any leave
- Cadvise him to convert immediately, because group coverage always ends on a leave
- check the plan's rules on coverage during a leave and whether premiums must be paid
Correct answer: D) check the plan's rules on coverage during a leave and whether premiums must be paid
Plans differ on whether coverage continues during a leave and who pays. Checking in advance lets the client arrange individual coverage or make premium payments rather than discovering a gap later.
Why the other options are wrong
- AContinuation during a leave depends on the plan's own terms.
- BNo general legal requirement obliges continuation for every leave.
- CMany plans do continue coverage, so immediate conversion may be unnecessary.
Exam tip
Read the plan's leave provisions before assuming coverage continues.
Common mistake
Assuming employment status alone keeps group coverage in force.
What this tests
CISRO competency component 1.2 — Assess the client's needs and situation — which is weighted at 35% of the Life Insurance module. Written against the published curriculum.
More from component 1
- A client's existing policies were all sold by another agent who has left the business. The reviewing agent should:
- A client supports an adult child with a permanent disability who will never be self-sufficient. In the needs analysis this is:
- A self-employed client's income fluctuates widely year to year. When determining the income to replace, the agent should:
- A 58-year-old client plans to retire at 65 and has a pension that will pay a survivor benefit. How does time to retirement affect the life insurance need?
- Which of the following is a capital expense arising at death, rather than an ongoing income need?
- A client is the sole income earner in a household with a stay-at-home spouse and two young children. The greatest risk that life insurance on the client addresses is:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.