LLQP Life Insurance · Component 1.1 · 35% of the exam
A client is in the middle of a divorce. The agent should:
- AProceed as if the marriage will continue, since the divorce is not final and the client's needs are unchanged until the decree is issued
- BCancel all existing coverage, since the beneficiary designations will be wrong once the divorce is complete
- CName the new partner immediately, so the client's wishes are reflected before the settlement is finalized
- Recognize that needs, beneficiaries and obligations are about to change, and consider whether to wait for the settlement
Correct answer: D) Recognize that needs, beneficiaries and obligations are about to change, and consider whether to wait for the settlement
Divorce reshapes the situation: support obligations, custody, asset division and beneficiaries. Court orders may require specific insurance. The agent documents the current facts and revisits when the settlement is known.
Why the other options are wrong
- AIgnoring an imminent divorce produces a recommendation that will be wrong within months.
- BCancelling coverage during a divorce can breach interim orders.
- CNaming a new partner mid-divorce may conflict with court orders.
Exam tip
During a divorce, document, wait for settlement terms where possible, and never change designations that a court may control.
Common mistake
Changing beneficiaries while a separation agreement is being negotiated.
What this tests
CISRO competency component 1.1 — 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.