LLQP Life Insurance · Component 1.1 · 35% of the exam
A group client (an employer) asks an agent to review its group life plan. Which piece of information is specific to assessing a group rather than an individual?
- The composition of the group and the conditions of membership
- BThe owner's spouse's income, since it shows whether the owner's family depends on the business surviving
- CThe owner's blood pressure and other health readings, since the group's rate depends on the owner's health
- DThe owner's personal hobbies, since hazardous pursuits by the owner raise the premium for the whole group
Correct answer: A) The composition of the group and the conditions of membership
For a group, the agent assesses who is eligible, the membership classes, how benefits are set, who pays premiums and how vulnerable the plan is to termination. Individual medical and family facts belong to individual underwriting, not group assessment.
Why the other options are wrong
- BThe owner's spouse's income is a personal fact-finding item, irrelevant to the group.
- CGroup plans are not individually underwritten.
- DAn owner's hobbies bear on personal underwriting, not on the group plan.
Exam tip
Assessing a group means membership, eligibility, classes, funding and plan vulnerability — not individual medical facts.
Common mistake
Applying individual fact-finding questions to a group client.
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.