LLQP Life Insurance · Component 4.2 · 10% of the exam
A group life claim is submitted for a former employee who left the company eight months earlier without converting. The likely outcome is:
- AThe claim is paid at half the amount, since the former employee had left the plan less than a year before death
- BThe employer pays the claim personally, since it failed to remind the employee of the conversion window
- The claim is denied because coverage ended at termination and the conversion window expired, unless an extension applies
- DThe claim is paid in full, since group life continues for twelve months after termination under the statutory conditions
Correct answer: C) The claim is denied because coverage ended at termination and the conversion window expired, unless an extension applies
Group coverage ends with membership. Only conversion (within its short window), a disability waiver, or a specific extension keeps it alive. This is why the agent should alert departing members immediately.
Why the other options are wrong
- AThere is no half-payment rule.
- BEmployers are not insurers.
- DCoverage ended when employment ended and the conversion window closed.
Exam tip
Leaving the group without converting usually means no coverage months later.
Common mistake
Assuming group life lingers after employment ends.
What this tests
CISRO competency component 4.2 — Provide customer service during the validity period of the coverage — which is weighted at 10% of the Life Insurance module. Written against the published curriculum.
More from component 4
- After a policy is reinstated, the contestability period:
- A revocable beneficiary designation is changed by:
- A client asks the agent to hold the beneficiary change form 'until next week' and dies in the meantime. The consequence is that:
- A client wants to reduce the face amount of her policy because her needs have fallen. The agent should note that:
- A client is unable to pay premiums temporarily on a whole life policy. Before letting it lapse, the agent should suggest:
- A client's term policy is being replaced with a new one from another insurer because it is cheaper and he remains healthy. To protect the client, the agent should ensure that:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.