LLQP Life Insurance · Component 1.2 · 35% of the exam
A client is leaving her employer and her group life coverage will end. The review should identify that:
- Aconversion is available at any time during the following five years without evidence
- a conversion privilege usually exists but must be exercised within a short window
- Cthe coverage continues for a further year at the employer's expense after departure
- Dthe group coverage can be transferred to her next employer's plan on request
Correct answer: B) a conversion privilege usually exists but must be exercised within a short window
Group contracts commonly allow conversion to an individual policy without evidence of insurability, but the window is measured in days after coverage ends. Missing it can be serious for a client whose health has changed.
Why the other options are wrong
- AThe window is short, not a period of years.
- CEmployer-paid coverage ends with the employment.
- DCoverage does not transfer between employers' plans.
Exam tip
Raise the conversion window the moment a client mentions leaving a job.
Common mistake
Discovering a conversion right after the window has closed.
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.