LLQP Life Insurance · Component 1.3 · 35% of the exam
An analysis shows a clear need on both spouses, but one of them proves uninsurable. The agent should:
- Aapply in the insurable spouse's name for coverage intended to protect against the other's death
- Babandon the plan entirely, since partial coverage would be of no practical use
- Cwait several years and reapply for both spouses at the same time
- insure the spouse who can be insured and document the exposure that remains
Correct answer: D) insure the spouse who can be insured and document the exposure that remains
Covering what can be covered reduces the household's exposure, and the remaining gap should be recorded so the family can plan around it through savings or a future application.
Why the other options are wrong
- AA policy insures the life named; it cannot cover a different person's death.
- BPartial coverage still reduces the family's exposure meaningfully.
- CWaiting leaves the insurable spouse uncovered as well.
Exam tip
Insure what you can and document the exposure that remains.
Common mistake
Abandoning a plan because one part of it cannot be completed.
What this tests
CISRO competency component 1.3 — 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.