LLQP Life Insurance · Component 1.2 · 35% of the exam
A widowed client holds a joint last-to-die policy that insured both spouses. Following the first death the policy:
- Amust be converted into a single life contract within thirty days
- Bpaid a death benefit on the first death and has now terminated
- continues in force and will pay on the surviving insured's death
- Dlapses automatically because one of the two insured persons has died
Correct answer: C) continues in force and will pay on the surviving insured's death
A last-to-die contract pays when the second insured dies, so it continues after the first death. Whether premiums continue, and whether the coverage still matches the need, should be reviewed at that point.
Why the other options are wrong
- ANo conversion requirement arises on the first death.
- BNo benefit is paid on the first death under a last-to-die contract.
- DThe contract is designed to continue until the second death.
Exam tip
Last-to-die pays on the second death and continues after the first.
Common mistake
Expecting a last-to-die policy to pay when the first spouse dies.
What this tests
CISRO competency component 1.2 — 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.