LLQP Life Insurance · Component 2.1 · 30% of the exam
A group member wants optional life coverage above the basic amount her plan provides. She should expect that:
- Athe employer pays the premium for optional coverage as it does for basic
- evidence of insurability is normally required for the optional amount
- Coptional coverage may be purchased only during the first month of employment
- Dthe optional amount is issued automatically like the basic coverage
Correct answer: B) evidence of insurability is normally required for the optional amount
Basic coverage is usually issued without evidence up to the plan's non-evidence maximum. Optional amounts are individually underwritten, and a member whose health has changed may be declined.
Why the other options are wrong
- AOptional coverage is normally paid for by the member.
- CApplications are commonly accepted at other times, subject to evidence.
- DOptional amounts are underwritten rather than automatic.
Exam tip
Optional group coverage is underwritten; basic usually is not.
Common mistake
Assuming all group coverage is issued without evidence.
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.