LLQP Life Insurance · Component 1.1 · 35% of the exam
A client spends half of each year working overseas for a foreign employer. During fact-finding the agent should establish:
- his residence status, where his family lives and which benefits he still qualifies for
- Bonly the name of the foreign employer, so the group coverage can be verified later
- Cwhether the foreign country would permit a Canadian insurer to pay a claim there
- Dnothing beyond his Canadian address, since residence is irrelevant to a life insurance need
Correct answer: A) his residence status, where his family lives and which benefits he still qualifies for
Time spent abroad affects contribution years for government benefits, the survivor benefits a family could expect and the tax treatment of assets. Insurers also ask about foreign travel and residence during underwriting.
Why the other options are wrong
- BGroup coverage is only one part of a much wider picture.
- CCanadian insurers pay claims to beneficiaries regardless of location.
- DResidence affects government benefits, tax and underwriting questions.
Exam tip
Time abroad changes benefit entitlement, tax exposure and underwriting.
Common mistake
Recording a Canadian address without exploring where the client actually lives.
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.