LLQP Life Insurance · Component 1.2 · 35% of the exam
A client is covered as a dependant under her spouse's group plan. The review should record that this coverage:
- Aprovides the same amount as the spouse's own coverage under the plan
- Bcan be converted by the client into an individual policy at any time she chooses
- depends on the spouse's employment and the couple's relationship continuing
- Dbelongs to the client and continues regardless of what happens to her spouse's employment
Correct answer: C) depends on the spouse's employment and the couple's relationship continuing
Dependant coverage ends if the member leaves the employer, the plan changes or the relationship ends. It is typically a small amount and should never be treated as the client's own protection.
Why the other options are wrong
- ADependant amounts are usually far smaller than the member's.
- BConversion rights for dependant coverage are limited or absent.
- DThe coverage depends entirely on someone else's employment.
Exam tip
Dependant group coverage is fragile and usually small.
Common mistake
Counting a spouse's dependant coverage as the client's own protection.
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.