LLQP Life Insurance · Component 2.1 · 30% of the exam
A group member becomes totally disabled and stops working. Under many group life plans her coverage:
- may continue under a waiver provision while she remains disabled
- Bconverts automatically into an individual policy at her own expense
- Cends immediately, since she is no longer an actively working employee
- Dcontinues indefinitely regardless of whether she recovers or returns to work
Correct answer: A) may continue under a waiver provision while she remains disabled
Group contracts commonly contain a waiver provision continuing life coverage without premium while total disability lasts, subject to proof. The terms vary, so the certificate and the contract must be checked.
Why the other options are wrong
- BConversion is a separate right exercised by the member.
- CA waiver provision exists precisely to avoid that outcome.
- DContinuation depends on the disability continuing and proof being provided.
Exam tip
Check the group waiver provision before assuming a disabled member lost coverage.
Common mistake
Telling a disabled member their group life ended when they stopped working.
What this tests
CISRO competency component 2.1 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Life Insurance module. Written against the published curriculum.
More from component 2
- A client has a need lasting about twenty years and compares a ten-year and a twenty-year term policy. The main point to explain is that:
- A client exercises the conversion privilege on his term policy. The permanent premium will be based on:
- A client notices that a small policy costs proportionately more per unit of coverage than a larger one. The explanation is that:
- A client wants to pay monthly rather than annually. The agent should explain that monthly payment:
- A client asks why dividends from her participating policy are not taxed like interest from a bank. The reason is that a dividend is:
- A universal life policyholder is choosing among the investment options inside her policy. She should understand that:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.